Solana Shows Signs of Rebound After 13.31% Weekly Drop

Solana (SOL) has shown signs of a potential rebound after experiencing a significant drop in its price over the past week. Technical analysts have identified key indicators that suggest the downward trend may be losing momentum, sparking discussions among traders about possible buying opportunities.

Cryptocurrency analyst Ali has noted a buy signal on Solana’s 12-hour chart, as indicated by the TD Sequential indicator. This signal, which appeared after Solana's price fell from approximately $172 to near $152 between May 27 and June 1, suggests a potential exhaustion point for the downward price movement. Historical data supports the idea that this pattern often precedes price reversals or relief rallies in the cryptocurrency market.

The buy signal emerged as smaller candlestick bodies formed around the $155 level, indicating reduced selling pressure. Currently, Solana is trading at $153.18, reflecting a modest decline of 0.68% over the past 24 hours. However, the cryptocurrency has experienced a more substantial 13.31% drop over the previous seven days. Despite the price weakness, trading volume reached $3.23 billion in the last 24-hour period, suggesting continued market interest.

Solana has established a weekly trading range between $151.03 and $178.72, with immediate support identified at $152.71 and resistance at $158.62. Market participants are closely monitoring whether SOL can maintain its position above the $150 psychological support level. If the previous low of $150 fails to hold as support, professional trader QuantJB has identified a potential drop target in the $130 to $140 range. This approach reflects a measured strategy that accounts for both bullish and bearish scenarios, with plans to reduce positions if SOL breaks below critical support levels.

Should buyers emerge, technical analysts suggest SOL could target resistance zones between $161 and $167. Market participants emphasize the importance of volume confirmation and decisive price action to validate any potential reversal scenario. The current market data and technical indicators provide a mixed outlook for Solana, with both bullish and bearish possibilities on the horizon. Traders are advised to remain vigilant and prepared for multiple market outcomes as the situation develops.