Solana News Today: Solana Nears Bullish Breakout as Ethereum Scam Concerns Loom

Solana (SOL) is showing early signs of a potential bullish breakout as the TD Sequential indicator recently triggered a buy signal at $178. The signal, commonly used to identify trend reversals, has ignited optimism among traders, especially as the price consolidates above the critical $180 level. On the 4-hour chart, bearish momentum appears to be waning, with candlesticks showing reduced strength and a green arrow appearing beneath the last bearish candle, reinforcing the possibility of a reversal [1].

Price action has also begun forming higher lows, suggesting that buyers are stepping in and building strength toward a key $188–$190 resistance range. However, the bullish narrative is not without challenges. Growing concerns about Ethereum-based scams are creating a cloud of uncertainty over the broader crypto ecosystem, with some analysts warning that these activities could spill over into Solana’s infrastructure and affect user trust [2].

A notable voice in the Solana community, Dean Little, has raised alarms about the risk of Ethereum “grifters” exploiting Solana’s fast and cost-effective network for fraudulent activities. These concerns are not baseless: daily active addresses on Solana have declined by 16% in the past week, and DeFi total value locked (TVL) has fallen by 8%. While July saw a high of $206 and strong performance with $9.85B in TVL and $82B in DEX volume, the recent price retrace suggests that user activity may be cooling [1].

Despite the risks, technical indicators remain in favor of a potential Solana rebound. The 20-day EMA near $178 is currently holding as dynamic support, and retail long positioning is increasing. Rising open interest also indicates that traders are bracing for a move. A sustained close above $190 could reignite bullish momentum, potentially leading to a broader market recovery for the asset [2].

However, the market remains in a delicate balance. While institutional interest in Solana is growing—particularly in liquid staking solutions for ETFs—Ethereum’s struggles with security vulnerabilities continue to weigh on investor sentiment. The broader market has also seen Bitcoin benefit from institutional inflows, which has indirectly provided some stability to altcoins like Solana [4].

In summary, Solana is at a pivotal moment. The technical outlook is cautiously optimistic, but real-world challenges such as scam activity and user engagement trends must be closely monitored. The coming sessions will be crucial in determining whether the TD Sequential signal translates into a meaningful breakout or if broader market distrust will hinder Solana’s progress [3].

Source:

[1] Solana Faces Ethereum Scam Woes as TD Sequential Hints at Bullish Breakout (https://www.newsbtc.com/news/solana-faces-ethereum-scam-woes-as-td-sequential-hints-at-bullish-breakout/)