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Rare buy signal on Solana charts hints at rebound as traders eye $250 breakout!
As of now, Solana’s [SOL] price has bounced back from its recent correction and is trading at $190.04 near a critical support zone. Over the last 24 hours, the cryptocurrency has seen a remarkable 4.91% price increase, which indicates that the market is becoming increasingly optimistic about SOL’s future prospects.
The TD Sequential indicator, widely respected in technical analysis for providing precise buy and sell signals, has issued a rare buy signal on Solana’s daily chart, sparking widespread enthusiasm among traders who are now eyeing a potential breakout to $250.
Crypto analyst Ali (@ali_charts) has stressed the significance of this signal, stating that it often precedes strong bullish momentum and presents an opportunity for long positions at these levels. The Bollinger Bands also hint at oversold conditions with SOL trading near the lower boundary at $176.52, further solidifying the thesis.
While many market participants will be closely monitoring $186 as an immediate support level, they should be equally cautious of potential resistance at $213.88 and $251.24 on the Solana chart. Should a breakout occur above these levels, the cryptocurrency may see an exponential increase in price action driven by increased demand.
Solana’s network fundamentals remain robust, with its Total Value Locked (TVL) currently sitting at an impressive $8.312 billion, representing an 1.83% increase over the last day alone. The platform has also shown remarkable growth, with a trading volume of over $97 billion in December outpacing Ethereum and other competitors.
Recent data from Coinglass indicates mixed signals within the derivatives market. While open interest increased by 8.85% to $4.68 billion, options volume surged an astonishing 301% to $10.1 million, reflecting a surge in speculative activity. The Binance long/short ratio for top traders has turned bullish, with a reading of 5.07 indicating that most market participants expect upward momentum.
In conclusion, Solana’s technical setup, combined with robust network activity and mixed derivatives signals, presents an intriguing narrative for potential recovery if key resistance levels can be breached.
Source: ambcrypto.com
