Decoding Solana’s next move: SOL can reclaim $160, but first, it must…

• The TD Sequential purchase sign aligns with bullish sentiment and demanding assist close to $154.
• Liquidation clusters and rising derivatives’ exercise level to looming value volatility.

The TD Sequential indicator has flashed a “9” purchase sign on Solana’s [SOL] 12-hour chart, hinting at a potential reversal after a pointy drop from over $180 to $154. 

Including to the bullish setup, MarketProphet sentiment exhibits constructive alignment: crowd sentiment sits at 0.36, whereas good cash registers a stronger 1.31. 

This confluence of assist, sentiment, and technical sign could act as a catalyst for restoration after the drop from $180.

Supply: X/Ali

Is SOL’s cautious buying and selling masking a buildup of breakout strain?

The derivatives market paints an image of rising speculative curiosity in Solana. Quantity surged almost 30% to $10.18B, whereas the Open Curiosity (OI) ticked up 2.51% to $6.67 billion. 

Furthermore, Choices Quantity jumped 45.90%, and Choices OI rose 27.35%, signaling aggressive positioning. 

These sharp will increase present merchants are making ready for a volatility occasion, possible round Solana’s assist space. 

On the time of writing, Spot flows recorded $106.35 million in inflows towards $116 million in outflows, reflecting a web distinction of solely $10 million. This slight outflow signifies a cautious market, the place neither consumers nor sellers dominate. 

Regardless of the online unfavourable determine, the small hole exhibits hesitation somewhat than sturdy conviction. Traders look like watching Solana’s response at present ranges earlier than committing closely.

Supply: CoinGlass

Will SOL liquidation clusters close to $150 and $160 drive…

The Binance liquidation heatmap exhibits dense clusters close to $150 and $160, zones the place high-leverage positions are concentrated. 

These ranges now act as short-term battlegrounds. A breakdown under $150 might set off lengthy liquidations, intensifying downward strain.

Conversely, a push above $160 could spark a wave of brief liquidations, accelerating any upward breakout. 

Subsequently, these clusters act as volatility hotspots. Worth course round these ranges will possible resolve whether or not SOL reclaims momentum or falls deeper into bearish territory.

Supply: CoinGlass

Does the RSI assist the case for a short-term rebound?

At press time, the every day RSI sat round 40.57, edging nearer to the oversold threshold. This implies that promoting strain could also be cooling. In the meantime, Solana has damaged under its ascending channel however nonetheless holds above horizontal assist. 

This setup hints at a possible increased low if consumers defend this zone. Nonetheless, failure to carry might deepen losses towards $140 or decrease. 

Subsequently, RSI motion within the coming days might be key—if it reverses upward, it might strengthen the case for a aid rally towards $160.

Supply: TradingView

Can Solana defend assist, and reclaim $160 momentum?

Solana has a reputable likelihood to reclaim $160 if present circumstances persist. The convergence of a TD Sequential “purchase” sign, rising derivatives’ engagement, and bullish sentiment from each good cash and the gang builds a powerful short-term restoration case. 

Nonetheless, the value should break and maintain above $160 to substantiate momentum. Till then, assist round $154 stays essential. 

A drop under $150 might invalidate this setup and shift management again to the bears. Subsequently, the subsequent transfer hinges on how SOL reacts to those close by liquidity zones.