- The Solana TD sequential indicator suggested a potential tendency reversal, strengthening the bullish feeling.
- With mixed signals at stake, is this the start of a sustained recovery?
After breaking the support of $ 200, Solana (ground) plunged $ 130 – its lowest level in five months – marking a critical application area.
The TD sequential indicator has flashed a strong purchase signal, suggesting a potential tendency reversal.
However, with the volume of trading which collapses by 61%, low purchase pressure increases red flags. Is this the start of a recovery, or just a bull trap before another leg down?
Technical signals and the Green Flash market
Solana plunged more than 30% in the last month, while market -scale volatility continues to push assets with large capitalization lower than key support areas.
The uncertainty being always dominant, an immediate recovery remains elusive unless that wider market conditions are improving.
However, some bullish factors could support the action of soil prices.
Historically, similar price levels have attracted lowering buyers in search of entries at reduced prices, marking this as a solid demand zone.
Bitcoin’s consolidation phase (BTC) often encourages investors to turn in altcoins, which potentially increases soil demand.
From a technical point of view, the sequential TD indicator – a tool widely used to identify the reversals of trends – has flashed a strong purchase signal.
Will Solana Bulls defend the area?
Despite a purchase signal, market participation decreases – the volume of exchanges fell by 61%, which highlights low demand.
The planned response of “Buy-the-Dip” remains absent, with red candlesticks overlooking the daily graphic. The benefit of its March rally to nearly $ 180 continues to weigh on price action.
Worse, the ground / BTC pair has plunged to a two -year hollow, marking this cycle as its weaker so far. With investors hesitating to return, Solana risks deeper corrections unless the feeling changes.
Source: TradingView (Sol / BTC)
The open interest of Solana (OI) increased by 1.63% to 3.95 billion dollars, but this increase occurs in the middle of a low accumulation.
Last week, the IOI culminated at $ 5.31 billion while Sol retests $ 180, only in Nosedive at $ 4.20 billion the next day while the sales pressure would erase 20.45% of its winnings.
Although the increase in the OO is a bullish signal in strong ascending trends, in volatile markets, it increases the risk of mass liquidation.
With a fragile feeling and trembling fragile prices, Solana remains at a crossroads, faced with the threat of deeper corrections.
