Solana Key Indicator Flashes Buy Signal On Daily Chart – Rally Ahead?

Solana (SOL) is showing resilience amid broader market weakness, as volatility shakes crypto assets across the board. After a sharp retrace alongside Bitcoin and Ethereum, Solana is stabilizing above key demand levels, sparking cautious optimism among investors. Many are eyeing this zone as a potential launchpad for the next leg up, especially as the market seeks to recover and regain bullish momentum.

Despite recent uncertainty, sentiment around Solana remains constructive. Analysts point to strong structural support and a history of sharp rebounds from similar technical setups. Among them, top crypto analyst Ali Martinez recently shared a key signal that has caught the attention of traders: the TD Sequential indicator has flashed a buy signal for Solana on the daily timeframe. Historically, this signal has preceded notable price rallies, particularly when it aligns with strong support zones.

With Solana holding firm and broader sentiment gradually improving, bulls are watching closely for a push into higher supply zones. If confirmed, a breakout from this range could send SOL toward new short-term highs. The coming days will be critical in determining whether Solana can sustain this momentum and lead the next altcoin rally.

Solana is holding a critical support zone near $145 after shedding more than 20% of its value since late May. The correction has brought SOL into a key demand area, where bulls appear to be defending the level with strength. Despite attempts to reclaim $160, the altcoin has faced persistent resistance, with fading momentum and rising macro risks clouding short-term price action.

Market-wide conditions haven’t helped either. Both Bitcoin and Ethereum have stalled below key resistance zones, failing to spark a broader rally in altcoins. This hesitation has intensified uncertainty, with some analysts calling for a deeper retracement in SOL if market leaders continue to slide. However, others remain optimistic that Solana could soon turn the tide.

A key signal for Solana has emerged, with analyst Martinez reporting that the TD Sequential indicator printed a buy signal on the daily chart. Historically, this indicator has been a reliable precursor to significant local bottoms and bullish reversals, particularly when seen near strong support levels. With SOL recently experiencing a selloff and now stabilizing, this signal underscores the growing bullish potential.

For now, Solana’s ability to hold above $145 will be key. A bounce from this level, combined with improving sentiment across large-cap assets, could trigger a fresh push toward $160 and beyond. If confirmed, such a move would signal that SOL is regaining strength and ready to retest higher resistance levels in the weeks ahead.

Solana (SOL) is trading at $148.44 after attempting a modest rebound from its recent local low near $145. The daily chart shows that SOL has lost momentum since peaking above $180 in late May, marking a 20% correction. Price is now holding just above the 100-day moving average (144.68), a key technical level that previously acted as support during consolidation phases.

The 50-day and 34-day moving averages are now trending downward, with the 50-day SMA around $159.33 and the 34-day EMA near $159.35 — both acting as dynamic resistance. Meanwhile, the 200-day SMA remains higher at $177.49, reinforcing the presence of a strong overhead supply zone between $160 and $180.

Despite the bearish pressure, volume has remained relatively muted during the recent drop, suggesting that panic selling hasn’t taken over yet. If SOL manages to hold above the $144–$145 region, this could form the base for a rebound, especially if broader market sentiment improves.

A daily close back above the 34-EMA could open the door for a recovery toward $160. However, a breakdown below $144 could trigger further downside toward the March lows. For now, SOL remains at a technical crossroads, with short-term direction hinging on the next few candles.

Featured image from Dall-E, chart from TradingView