Solana (Sol) is rebounding 1% to $187.43 after triggering a TD sequential purchase signal for $178. The widely used technical indicator to identify trend reversals has sparked new bullish sentiment among traders, particularly as Sol consolidates beyond the $180 level.
Related readings
On the four-hour chart, the bearish momentum is diminishing as the candlesticks lose strength and early signs that the seller is losing control. The green arrow below the final bearish candle, coupled with the confirmation of the black arrow, adds credibility to the bullish paper.
Solana prices The action is forming a higher low, suggesting that strengths are being built for breakouts that could go from $188 to $190. But Sol’s bullish narrative is alleviated by increasing internal tensions in the crypto space, particularly as security concerns grow.
SOL's price records a slight bearish deviation on the daily chart following a rebound from critical support. Source: SOLUSD on Tradingview
Does Ethereum-based fraud threaten the integrity of Solana’s ecosystem?
Community sentiment has become cautious after warnings from renowned Solana contributor Dean Little. He flags the risk of Ethereum’s “grifters” and leverages Solana’s fast and affordable infrastructure for fraud, which could undermine trust and drive away long-term users.
This concern is not unfounded. Solana has confirmed that daily active addresses have decreased by 16% over the past week, and Defi Total Value (TVL) is immersed by 8%. July was strong, with a $98.5 billion TVL and DEX volume of $82 billion, and signs of cooling engagement were raised from the Sol price high from $206.
Trader’s eyes breakout as sentiment and technical collide
Despite the volatility, TD sequential purchase signal provided a technical lifeline. Sol holds a 20-day EMA at nearly $178. This is important dynamic support. The long positioning of retail has skyrocketed and open interest has risen, suggesting traders are preparing for the move.
Related readings
As Sol Battles for controls above $180, a sustained near over $190 could rekindle momentum. nevertheless, Ethereum-based scam Throwing shadows, traders must keep awake. In the next few sessions, you can determine whether Solana’s bullish setup will lead to a breakout or succumb to a wider sense of mistrust.
ChatGpt cover image, SolUSD chart for TradingView
