- TD Sequential issues a rare buy signal, positioning Solana for a potential breakout toward $250 resistance.
- Solana’s TVL hits $8.312 billion as strong fundamentals and bullish derivatives metrics spark market enthusiasm.
Solana (SOL) rebounded from its recent correction and is trading at $190.04 at press time, near a critical support zone.
The crypto saw a 4.91% price increase over the past 24 hours, despite an 11.43% decline over the past seven days.
Its 24-hour range of $180.35 to $192.86 reflects a consolidation phase, while the 7-day low of $176.72 indicates strong support near the lower Bollinger band.
Analysts predict rebound based on technical indicators
The TD Sequential indicator issued a buy signal on the daily chart, sparking anticipation of a price recovery. Ali, crypto analyst (@ali_charts) note,
“This signal is often the precursor to strong upward momentum, suggesting an opportunity for long positions at these levels.”
Source:
According to the daily chart, the Bollinger Bands suggest oversold conditions with SOL trading near the lower boundary at $176.52. Resistance lies at $213.88, which aligns with the midline of the Bollinger Bands, and at $251.24, the upper limit.
A break above these levels could fuel further momentum, although a fall below $186 could result in a decline towards $165, a historically strong area of demand.
The Average Directional Index (ADX) currently stands at 33.39, confirming the strength of the ongoing trend. Although the recent bearish momentum persists, the ADX level signals that any break above resistance could result in a strong upward move.
On the other hand, traders are closely watching $186 as an immediate support level.
Source: Trading View
Strong fundamentals support Solana’s growth
Solana’s network fundamentals remain robust, with its total value locked (TVL) at $8.312 billion, reflecting a 1.83% increase over the past 24 hours.
The network too recorded The stablecoin’s market cap stands at $4.972 billion and generated $3.08 million in fees and $1.54 million in revenue in 24 hours.
Activity on Solana’s decentralized exchange protocols continues to increase. Solana outperformed Ethereum (ETH) and other competitors in December, with a trading volume of over $97 billion, compared to Ethereum’s $74 billion.
The platform’s active addresses stand at 4.16 million, with 70.34 million transactions processed in the last 24 hours.
Derivatives market signals growing interest
Recent data from coin mechanism shows mixed signals in the derivatives market. Open interest rose 8.85% to $4.68 billion, while options volume jumped 301% to $10.1 million, reflecting increased speculative activity.
The Binance long/short ratio for top traders is very bullish at 5.07, indicating that most traders expect bullish momentum.
Source: Coinglass
Despite this optimism, trading volume declined 6.81% to $9.24 billion, suggesting caution in the market.
Realistic or not, here is the market capitalization of SOL in terms of BTC
Liquidation data shows balanced pressure, with $4.89 million in long liquidations and $4.52 million in short liquidations, indicating a tug of war between the bulls and bears.
Solana’s technical setup, combined with strong network activity, suggests recovery potential if key resistance levels are breached.
