Solana Rebound Hopes Rise After TD Sequential Issues a Buy Signal on SOL

A TD Sequential buy signal has appeared on the daily chart for Solana, suggesting potential short-term stabilization near a key support zone. The signal is being closely monitored as a possible reaction point amid ongoing price declines.

The buy signal on the 4-hour chart also suggests a short-term bounce for Solana, with price near the $85 support level. Analysts caution, however, that this signal does not necessarily indicate a confirmed trend reversal.

Network activity remains steady despite the declining price, with Solana's network still handling a significant share of global crypto transactions. This suggests some underlying strength in the ecosystem, even as the broader trend remains bearish.

Why Is the $75–$80 Range Critical for Solana?

The $75 to $80 range is currently acting as support for Solana, a level that has historically provided price stability in recent sessions. A break below this range could expose the $60 to $65 level, increasing downward pressure on the asset.

Momentum indicators such as RSI and MACD show early signs of stabilization, but they remain in weak territory. RSI is currently between 40 and 51, and MACD is near zero, indicating limited bullish momentum.

The $75–$80 zone is being tested, with traders watching closely for signs of a sustained recovery. A successful defense of this level could lead to a short-term rebound toward $89 or $90, but the broader downtrend remains intact.

What Are Analysts Watching for Confirmation of a Rebound?

On the 4-hour chart, the TD Sequential buy signal has completed its count, flashing a '9' setup. This is often interpreted as a potential turning point, though it does not guarantee a reversal.

The RSI on the 4-hour timeframe is at 34.22, indicating oversold conditions. This raises the possibility of a short-term bounce, especially if buyers defend the $85 support level.

The 100-period SMA is at $89.38, acting as resistance for upward movement. A move above this level would signal stronger bullish momentum but remains unlikely in the absence of a broader trend shift.

High-leverage long positions have led to significant liquidations in recent days, exposing a fragile market structure. Over $14 million in positions have been wiped out in the last 24 hours, highlighting the bearish bias among traders.

Crypto analysts suggest that Solana may be entering a distribution phase, characterized by a rounded top in price action. This pattern often precedes extended consolidation or further decline, especially if the $80 support level breaks.

On-chain data shows that network activity remains steady, with active addresses and transfers holding relatively firm. This suggests that the underlying network is still functioning at a high level, despite the bearish price action.

Despite the short-term risk-reward setup, the broader trend remains bearish. The 100-day SMA on the daily chart is at $106.21, far above current levels. This reinforces the idea that any rebound would be a short-term event rather than a trend reversal.

The $100–$110 range, previously a support area, is now acting as resistance. A sustained move above this range would be needed to shift the sentiment from bearish to neutral.

A successful bounce would require confirmation from key resistance levels. Traders are monitoring $89 and $93 as potential targets for a short-term rally. A failure to break above these levels could extend the downtrend toward $75 or lower.