Solana’s $130 support in trouble – Can SOL bulls step up?

• Solana’s TD Sequential indicator prompt a possible development reversal, reinforcing bullish sentiment.
• With combined alerts in play, is that this the beginning of a sustained restoration?

After breaking beneath the $200 assist, Solana [SOL] plunged to $130 – its lowest stage in 5 months – marking a crucial demand zone.

The TD Sequential indicator flashed a robust purchase sign, suggesting a possible development reversal.

Nevertheless, with buying and selling quantity collapsing by 61%, weak shopping for strain raises purple flags. Is that this the start of a restoration, or only a bull lure earlier than one other leg down?

Technical and market alerts flash inexperienced

Solana has plunged over 30% prior to now month, as market-wide volatility continues to push high-cap belongings beneath key assist zones. 

With uncertainty nonetheless dominating, an instantaneous restoration stays elusive until broader market circumstances enhance.

Nevertheless, a number of bullish elements might assist SOL’s value motion. 

Traditionally, related value ranges have attracted dip patrons searching for discounted entries, marking this as a robust demand zone. 

Bitcoin’s [BTC] consolidation part typically encourages traders to rotate into altcoins, doubtlessly rising SOL’s demand.

From a technical perspective, the TD Sequential indicator – a broadly used instrument for recognizing development reversals – has flashed a robust purchase sign. 

Will Solana bulls defend the zone?

Regardless of flashing a purchase sign, market participation is dwindling – trading volume has dropped 61%, highlighting weak demand. 

The anticipated “buy-the-dip” response stays absent, with purple candlesticks dominating the each day chart. Revenue-taking from its March rally to just about $180 continues to weigh on value motion.

Worse but, the SOL/BTC pair has plunged to a two-year low, marking this cycle as its weakest to date. With traders hesitant to re-enter, Solana dangers deeper corrections until sentiment shifts.

Supply: TradingView (SOL/BTC)

Solana’s Open Curiosity (OI) has edged up 1.63% to $3.95 billion, however this rise comes amid weak accumulation. 

Simply final week, OI peaked at $5.31 billion as SOL retested $180, solely to nosedive to $4.20 billion the following day as promoting strain erased 20.45% of its features.

Whereas rising OI is a bullish sign in sturdy uptrends, in unstable markets, it heightens the danger of mass liquidations. 

With sentiment fragile and value motion shaky, Solana stays at a crossroads, dealing with the specter of deeper corrections.