Solana (SOL) Flashes TD Buy Signal Despite Bearish Market Sentiment, Rally Incoming?

Solana price experienced a decrease that sent it to $173 before recovering above $200. Amid the move, the token is now flashing a TD buy signal which now means a pump could be around the corner.

Solana price slipped below $173 before recovering to trade above the $200 level on Monday. Among the technical highlights, the token is now flashing a TD buy signal, suggesting a potential pump ahead.

Solana’s price faced selling pressure during the session, which was highlighted by Bitcoin's price struggles and resulted in broad altcoin sell-offs across Solana's networks. The recovery of Solana’s price above the $200 mark indicated solid market support at lower levels, reducing the risk of further declines unless another major external disruptive factor emerges.

TD Sequential signals potential reversal despite bearish market sentiment

The TD Sequential indicator signaled a buy on Solana from its daily timeframe, with the essential candle being a key technical element in the indicator's sequence. The signal indicates a fundamental transition might be unfolding after the price decline, favoring rising market momentum.

Past TD Sequential buy signals have often preceded price rebounds, making them an important technical point of interest for Solana price watchers.

According to a tweet by analyst Ali Martinez, Solana's price turning points have shown a connection to this particular indicator, based on historical data. A combination of a green arrow and the number “9” currently appears on the daily, suggesting potential price trend changes, similar to previous instances where SOL prices rallied on these signals.

The upcoming price direction for Solana remains to be seen, with a short-term bullish tendency to be tested amid ongoing bearish pressures.

SOL technical analysis and market outlook

Solana’s price chart on Monday showed continuous competition between market bullish and bearish forces, with the price fluctuations representing the general market sentiment. The price trend of Solana was down, as the currency experienced a deep price decrease, and the highs and lows declined.

However, judging by the price movement along with the bottom buy signal from TD Sequential, the selling pressure appeared to be weakening. There was strong evidence of market demand at the lower price level of $173, as denoted by the long wick.

Solana's price rose 6.07% to $206.33 in 24 hours, according to CoinMarketCap in their second image. The market capitalization reached $100.47 billion due to traders' enthusiasm.

The current decrease in trading volume was 26.26%, suggesting a slower market momentum. As Solana experienced a recovery, traders remained neutral to negative on its continuation, with trading volume showing a substantial decline.

Solana 4-hour price action

The 4-hour Solana price showed prices within a descending channel, indicating a temporary price movement downwards. The price moved up from the bottom end of this descending channel as the daily timeframe TD Sequential buy signal triggered.

Solana’s Money Flow Index was at 44.62, suggesting the token still had accumulation potential before starting a substantial price rise. A move of the MFI above 50 could signal rising buying strength, reinforcing the bullish outlook for Solana.

The combination of technical indicators suggested Solana could experience an upcoming brief price increase despite its current downward trend.

For a definitive trend change and bullish momentum restoration, SOL price must sustainably breach essential resistance levels around $220. A Solana breakout through descending channel resistance will create opportunities for additional price gains that point to $240-$250 as the next major target.