Solana (SOL) appears to be recovering as technical indicators, sentiment, and derivatives show alignment near a crucial support zone. The TD Sequential indicator recently issued a '9' buy signal on SOL’s 12-hour chart, suggesting a possible reversal from a recent low of $154 after a drop from over $180.
MarketProphet's sentiment analysis indicates positive market mood, with crowd sentiment sitting at 0.36 and smart money sentiment at a stronger 1.31. This combination of technical signals and sentiment could serve as a catalyst for a price recovery.
Notably, the derivatives market is witnessing increased speculative interest. Trading volume has surged by nearly 30% to $10.18 billion, while Open Interest (OI) has ticked up by 2.51% to $6.67 billion. Options volume rose by 45.90%, and Options OI increased by 27.35%, indicating aggressive positioning among traders.
Currently, spot flows reveal $106.35 million in inflows versus $116 million in outflows, leading to a net difference of only $10 million. This slight outflow reflects a cautious market stance, with neither buyers nor sellers demonstrating overwhelming conviction. Existing traders are closely observing Solana's congestion around present levels before making significant commitments.
The Binance liquidation heatmap also highlights important areas of leverage concentration, particularly near $150 and $160, which are now short-term battlegrounds. A breakdown below $150 could initiate long liquidations, increasing downside pressure. Conversely, a rally above $160 may trigger a wave of short liquidations, leading to potential upward movement.
As of now, the daily Relative Strength Index (RSI) stands at about 40.57, approaching the oversold threshold, which suggests that selling pressure could be easing. Although Solana has dipped below its ascending channel, it remains above critical horizontal support, indicating a possible higher low formation if buyers defend this level. On the downside, failing to maintain support could risk deeper losses toward $140.
If conditions remain stable, Solana has a reasonable chance to reclaim the $160 mark. The convergence of the TD Sequential 'buy' signal, increased derivative activity, and favorable sentiment lend credence to a short-term recovery scenario. However, sustaining a price above $160 is necessary for confirming a bullish trend. The critical support remains at $154, and a drop below $150 could redirect control back to bearish market forces. Therefore, Solana's next price movement will depend heavily on how it responds to immediate liquidity zones.
MarketProphet's sentiment analysis indicates positive market mood, with crowd sentiment sitting at 0.36 and smart money sentiment at a stronger 1.31. This combination of technical signals and sentiment could serve as a catalyst for a price recovery.
Notably, the derivatives market is witnessing increased speculative interest. Trading volume has surged by nearly 30% to $10.18 billion, while Open Interest (OI) has ticked up by 2.51% to $6.67 billion. Options volume rose by 45.90%, and Options OI increased by 27.35%, indicating aggressive positioning among traders.
Currently, spot flows reveal $106.35 million in inflows versus $116 million in outflows, leading to a net difference of only $10 million. This slight outflow reflects a cautious market stance, with neither buyers nor sellers demonstrating overwhelming conviction. Existing traders are closely observing Solana's congestion around present levels before making significant commitments.
The Binance liquidation heatmap also highlights important areas of leverage concentration, particularly near $150 and $160, which are now short-term battlegrounds. A breakdown below $150 could initiate long liquidations, increasing downside pressure. Conversely, a rally above $160 may trigger a wave of short liquidations, leading to potential upward movement.
As of now, the daily Relative Strength Index (RSI) stands at about 40.57, approaching the oversold threshold, which suggests that selling pressure could be easing. Although Solana has dipped below its ascending channel, it remains above critical horizontal support, indicating a possible higher low formation if buyers defend this level. On the downside, failing to maintain support could risk deeper losses toward $140.
If conditions remain stable, Solana has a reasonable chance to reclaim the $160 mark. The convergence of the TD Sequential 'buy' signal, increased derivative activity, and favorable sentiment lend credence to a short-term recovery scenario. However, sustaining a price above $160 is necessary for confirming a bullish trend. The critical support remains at $154, and a drop below $150 could redirect control back to bearish market forces. Therefore, Solana's next price movement will depend heavily on how it responds to immediate liquidity zones.
