Solana (SOL) Network Flashes Sell Signal, Analyst Issues Warning for SOL Traders

The Solana (SOL) network, a top-tier web3 ecosystem aiming to dethrone Ethereum (ETH) as the top smart contract blockchain, has experienced a significant rise in on-chain activity in recent times.

Solana (SOL) price has failed to continue its recent bullish momentum after invalidating a potential breakout attempt. The altcoin’s price has dropped over 21% in the past two weeks, sparking concerns among traders.

However, Solana’s price has rebounded over 15% in the last 24 hours, showing some resilience after the recent sell-off. At the time of writing, Solana’s price is trading at $138.

Solana’s hourly price has approached a crucial point that could either yield further bullish rebound or capitulation ahead. The TD Sequential indicator has flashed a sell on SOL’s hourly time frame.

This technical pattern usually anticipates a one to four candlesticks correction, expecting Solana’s price to retrace towards the range between $130-$135.

However, breaking the risk line at $146 would invalidate this signal, potentially driving $SOL up to $150-$166.

Solana’s daily DEX trading volume hit a new all-time high on Tuesday, surpassing $4 billion for the first time.

This surge in on-chain activity comes amid heightened fear of further crypto sell-off in the coming weeks. Notably, Solana’s price has dropped more than 21 percent in the past two weeks.

However, the large-cap altcoin, with a fully diluted valuation of about $80 billion, rebounded over 15 percent in the last 24 hours to trade around $138 on Tuesday during the mid-London session.

Solana’s network, with more than $4.4 billion in total value locked (TVL) and over $3.5 billion in stablecoins market cap, has gradually outshone Ethereum’s Web3 activity.

Despite lacking in the spot ETF market, Solana’s on-chain activity has gradually grown, fueled by its meme coin industry.

Consequently, after consolidating in the past seven months, the SOL/ETH pair is on the verge of bullish breakout to a new all-time high.

The above is the detailed content of Solana (SOL) Network Flashes Sell Signal, Analyst Issues Warning for SOL Traders. For more information, please follow other related articles on the PHP Chinese website!