Solana Price May Be Poised For An Upward Move If This Happens

Solana price has been facing a series of fluctuations in recent days, drawing traders’ attention. After a steep drop below $150, the SOL/USDT pair seems to have found some stability.

The current price is around $145. Traders are now focusing on key resistance levels that might set the tone for future movements.

Many are questioning whether Solana could resume its upward movement if it successfully breaks the $150 resistance level.

Solana Price Eyes Key Reversal as TD Sequential Buy Signal Flashes

The recent Solana price action has drawn attention due to the TD Sequential indicator flashing a buy signal on the daily chart.

This signal is often seen as a sign of a potential market reversal after a downtrend. The TD Sequential pattern tracks specific candle criteria, and a buy signal suggests that the selling pressure may have been exhausted, opening the door for an uptrend.

Crypto analyst Ali Chart has pointed out that this TD Sequential buy signal could mark the beginning of a rebound for Solana.

This signal follows a significant drop below the $150 level, which has been a critical support zone. If Solana can break through the $150 resistance, it may trigger a shift in market sentiment.

Ali Chart believes that a successful break could set the stage for a bullish movement, potentially targeting $160 or higher.

However, while the TD Sequential buy signal is positive, traders should wait for further confirmation.

A break above $150, along with rising volume and clear upward momentum, would validate the case for a continued rebound. Caution is necessary, as temporary reversals or consolidations can occur before sustained upward movement.

Solana Price Surge in Volume and Short Liquidations

Solana’s derivatives volume surged by 65.11%, signaling increased market interest and heightened volatility. This spike suggests that traders are positioning for a major price move, but the direction remains uncertain.

Much will depend on how Solana reacts to the $150 resistance level in the near future.

Alongside this volume increase, short liquidations have reached $50.62 million. Short liquidations occur when traders with short positions are forced to cover their losses by buying back assets, leading to upward price pressure.

The significant number of short liquidations hints at a short squeeze, potentially pushing Solana’s price upward in the short term.

However, the high volume of short liquidations may also signal the risk of a reversal. If too many long positions build up, a correction could occur.

Traders need to monitor the liquidity of short positions closely, as more liquidations could fuel further upside, while the lack of them could indicate the bullish momentum is fading. Solana’s price movement will depend on how these dynamics unfold.

Solana Price Mixed Technical Signals and Market Uncertainty

According to TradingView, both indicators are giving conflicting signs. A recent drop of over 5% on Thursday has prompted the Supertrend Indicator to signal a bearish turn since Solana is below the baseline.

This is a bearish sign, since the trendline is now $171, which is close to where prices were previously blocked.

The RSI reading of 37 points to a greater chance of a downturn, particularly when Solana gets close to the $140 level, compared to the fall seen in May.

On the other hand, the Moving Average Convergence Divergence has dipped below the median, with the bars now colored red and located in the negative region.

If the price of Solana falls below $140, it may continue the bearish movement and eventually hit $105, which is its lowest yearly closed price.

However, the recent spike of the Relative Strength Index indicator above 70 suggests it might be time for consolidation or a little pullback.

The MACD continues to suggest good days ahead for prices, but this gap could cause prices to fall briefly.