Solana (SOL) is on the brink of a breakout, showing encouraging signs that could lead to a strong rally. Recent analysis from renowned on-chain analyst Ali Martinez indicates a notable TD Sequential buy signal on the daily chart. This signal emerges after a prolonged period of selling pressure, hinting that the current downtrend may soon give way to a recovery in Solana’s price.
The appearance of TDS 9 on the chart is particularly promising, suggesting that Solana may have reached its bottom. A significant rebound from the $176 support level—a crucial barrier during the recent decline—reinforces this notion. Currently, Solana is trading at around $191, reflecting a solid 4% increase in daily price action.
As optimism builds, the next immediate resistance level to watch is $197. A successful breakout above this price could amplify bullish momentum, opening the door for higher targets. Conversely, the $176 level remains a critical point of support. If Solana dips below this threshold, it could undermine the bullish signals and subject its price to further declines.
Further adding to the positive sentiment, analyst Captain Faibik noted that Solana has recently broken out of a bullish pennant pattern on the weekly chart. This breakout, paired with a surge in buying momentum, has led to projections suggesting a potential price target of $400 in the upcoming months.
Interestingly, regulatory developments are becoming a pivotal factor in influencing Solana’s trajectory. The excitement surrounding the potential approval of spot Solana ETFs is fueling investor optimism. Nevertheless, there has been a setback with outgoing SEC Chair Gary Gensler reportedly rejecting such proposals, citing concerns about the cryptocurrency’s classification as a security. Despite this, the Solana community remains hopeful for future regulatory approval, especially under a potential Donald Trump administration.
At present, Solana is trading at approximately $194, reflecting a 7% gain in the last 24 hours. However, it’s worth pointing out that Solana’s value has decreased by 13% over the past week, illustrating ongoing bearish trends within the broader cryptocurrency market. Bitcoin (BTC), for instance, is hovering below $95,000, adding to the cautious outlook.
While the technical indicators for Solana appear supportive, it’s essential to keep an eye on broader market trends and key support levels to ensure the bullish narrative holds. If Solana can maintain its current momentum, it could realize the anticipated target in the near future, potentially providing rewarding returns for those willing to hold their investments.
