Key Insights:
- The TD Sequential indicator suggests a potential bullish reversal for Solana.
- Support at $130–$140 is holding, with buyers stepping in at lower levels.
- Daily active addresses remain stable, suggesting continued network Activity.
Solana price may be on the verge of a price rebound after the TD Sequential indicator flashed a buy signal on the 4-day chart. This suggests that the recent downtrend might be slowing down, increasing the chances of a price recovery.
Market analyst Ali pointed out that if Solana holds key support levels and gains momentum, the price could move toward the $145–$150 resistance zone, which will be crucial in determining the next trend direction.
TD Sequential Buy Signal Indicates Possible Reversal
The buy signal is flashing on Solana’s 4 day chart as the TD Sequential indicator has been used to identify trend exhaustion and possible reversals. It happens when following bearish candles stop falling and market players start hesitating whether it is the end of falling or the beginning of a rising movement.
The recent price action sees SOL decline from its early February highs above $200 to approach the current levels seen around $139.69. Therefore, this indicator’s signal points that selling momentum is possibly going down, giving opportunity to the buyers to regain control. That being said, confirmation of the reversal will only come if Solana succeeds to outsmart the $145–$150 resistance zone over the next few days.
Daily Active Addresses and Network Engagement
Despite the price decline, however, Solana’s steady active daily addresses could indicate a continued growth. In February those active addresses fell and at that time the network had around 5.3 million active addresses back in early this year. However, network activity has now begun to stabilize, showing signs of steady usage despite market fluctuations.
As rising network activity tends to indicate that an ecosystem is appealing, historically, the number of active addresses per day has often correlated with price recoveries. Additional support of Solana’s price rebound could come from user engagement which might continue to grow together with buying pressure.
Solana Price Technical Indicators Show Mixed Signals
The MACD line is looking towards the signal line in an attempt for a bullish crossover of the Moving average convergence divergence (MACD). If the crossover is done, it may provide a signal for shift in momentum.
With the RSI at 39.55, it remains below the 50 midline, indicating weak buying pressure. However, if it rises above 50, it could signal a trend reversal.
The cumulative volume delta (CVD) indicates that the buy volume (53.5K) is greater than the sell volume at 20.96K. If there is a slight accumulation of SOL then it means that some buyers are entering the market.
What’s Next for Solana Price?
On the support side, SOL has been holding strong buyers at around $130 – $140. Causing the price to go any lower. This has played the role of a critical demand area as buyers have come in and defended by price. Nonetheless, should SOL fail to defend the support, it could potentially lead to a subsequent test of $120 or below. Indicating the magnitude of weakness.
The first key resistance stands at $145–$150, a zone where previous breakdowns occurred. If Solana breaks above this resistance, it could gain momentum and move toward the $160–$170 range in the short term.
Disclaimer
In this article, the views and opinions stated by the author or any people named are for informational purposes only. And they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.
Olivia Stephanie is a FinTech enthusiast with a keen understanding of financial markets. Her passion for economics and finance has led her to explore emerging blockchain technology and cryptocurrency markets.