Solana has recently turned bullish, raising excitement among traders looking to buy SOL. A rare buy signal has emerged on the TD Sequential indicator, which suggests the potential for a substantial price rebound towards the $250 resistance level. As of now, Solana’s trading price is around $190.04, showing a 4.91% increase within the last 24 hours, even though it faced an 11.43% decline over the past week. These movements indicate a consolidation phase, particularly with its recent 24-hour price range of $180.35 to $192.86 and a 7-day low of $176.72, which highlights strong support near the lower Bollinger Band.
Technical analysts are predicting a recovery based on these indicators. One prominent crypto analyst noted that this buy signal could often lead to significant bullish momentum, suggesting that now might be a golden opportunity for traders to enter long positions. Looking at the Bollinger Bands, Solana appears to be in oversold conditions, trading close to the lower boundary at $176.52. Analysts see immediate resistance at $213.88 and further up at $251.24. If the price breaks above these levels, it could experience a strong surge. However, caution is warranted; a dip below $186 could pull it down towards $165, an important demand zone.
The Average Directional Index (ADX) currently sits at 33.39, confirming the strength of the current trend. Despite some bearish pressure recently, a breakout above key resistance could trigger a notable upward movement. Traders are keeping a close eye on $186 as an immediate support level, solidifying their strategies.
On the fundamentals side, Solana is thriving, with a Total Value Locked (TVL) of $8.312 billion, reflecting a 1.83% increase over the past day. The network boasts a stablecoin market cap of $4.972 billion, generating $3.08 million in fees and $1.54 million in revenue within a single day. Activity on Solana’s decentralized exchanges continues to outpace competitors, swinging over $97 billion in trading volume compared to Ethereum’s $74 billion in December. With 4.16 million active addresses and 70.34 million transactions processed in just the last 24 hours, it’s clear that interest in Solana’s ecosystem is robust.
In the derivatives market, signals are mixed but lean towards optimism. According to recent data from Coinglass, open interest has increased by 8.85% to $4.68 billion, while options volume has surged by 301% to $10.1 million. The Binance long/short ratio indicates that traders are largely bullish, sitting at 5.07. Nonetheless, the trading volume has dipped by 6.81% to $9.24 billion, which could suggest some caution in the market.
Liquidation data shows a balance between bulls and bears, highlighting an ongoing struggle, with $4.89 million in long liquidations and $4.52 million in shorts. Given the technical setup and strong fundamental performance, there could be a pathway for Solana to recover significantly, provided it can breach those crucial resistance levels.
