- The TD Sequential buy signal aligns with bullish sentiment and critical support near $154.
- Liquidation clusters and rising derivatives’ activity point to looming price volatility.
The TD Sequential indicator has flashed a “9” buy signal on Solana’s [SOL] 12-hour chart, hinting at a possible reversal after a sharp drop from over $180 to $154.
Adding to the bullish setup, MarketProphet sentiment shows positive alignment: crowd sentiment sits at 0.36, while smart money registers a stronger 1.31.
This confluence of support, sentiment, and technical signal may act as a catalyst for recovery after the drop from $180.
Source: X/Ali
Is SOL’s cautious trading masking a buildup of breakout pressure?
The derivatives market paints a picture of growing speculative interest in Solana. Volume surged nearly 30% to $10.18B, while the Open Interest (OI) ticked up 2.51% to $6.67 billion.
Moreover, Options Volume jumped 45.90%, and Options OI rose 27.35%, signaling aggressive positioning.
These sharp increases show traders are preparing for a volatility event, likely around Solana’s support area.
At the time of writing, Spot flows recorded $106.35 million in inflows against $116 million in outflows, reflecting a net difference of only $10 million. This slight outflow indicates a cautious market, where neither buyers nor sellers dominate.
Despite the net negative figure, the small gap shows hesitation rather than strong conviction. Investors appear to be watching Solana’s reaction at current levels before committing heavily.
Source: CoinGlass
Will SOL liquidation clusters near $150 and $160 drive…
The Binance liquidation heatmap shows dense clusters near $150 and $160, zones where high-leverage positions are concentrated.
These levels now act as short-term battlegrounds. A breakdown below $150 could trigger long liquidations, intensifying downward pressure.
Conversely, a push above $160 may spark a wave of short liquidations, accelerating any upward breakout.
Therefore, these clusters act as volatility hotspots. Price direction around these levels will likely decide whether SOL reclaims momentum or falls deeper into bearish territory.
Source: CoinGlass
Does the RSI support the case for a short-term rebound?
At press time, the daily RSI sat around 40.57, edging closer to the oversold threshold. This suggests that selling pressure may be cooling. Meanwhile, Solana has broken below its ascending channel but still holds above horizontal support.
This setup hints at a potential higher low if buyers defend this zone. However, failure to hold could deepen losses toward $140 or lower.
Therefore, RSI movement in the coming days will be key—if it reverses upward, it could strengthen the case for a relief rally toward $160.
Source: TradingView
Can Solana defend support, and reclaim $160 momentum?
Solana has a credible chance to reclaim $160 if current conditions persist. The convergence of a TD Sequential “buy” signal, rising derivatives’ engagement, and bullish sentiment from both smart money and the crowd builds a strong short-term recovery case.
However, the price must break and hold above $160 to confirm momentum. Until then, support around $154 remains crucial.
A drop below $150 could invalidate this setup and shift control back to the bears. Therefore, the next move hinges on how SOL reacts to these nearby liquidity zones.
