Solana appears poised for recovery after recent market disruptions led the cryptocurrency to retreat from its late May highs.
Technical analysts are noticing encouraging signs in Sol price charts, indicating that the downtrend momentum may be losing steam. The digital asset has found support near critical price levels, sparking discussions among traders about potential buying opportunities.
Market watchers point to specific technical indicators that have historically signaled reversals in trend. Current trading data shows that Solana is trying to stabilize after a tough week of price declines.
■ Technical indicators: Quick buy signals for SOL
Crypto analyst Ali identified a technical development in Solana's price movement.
The TD Sequential indicator has shown a buy signal on the 12-hour Sol chart, suggesting what could be the end of the recent downtrend. This technical pattern emerged after Solana dropped from around $172 to nearly $152 between May 27 and June 1.
The indicator showed a setup for number 9, which technical analysts interpret as a potential exhaustion point for the downward price movement.
Historical data suggests that this pattern often precedes price reversals or relief rallies in cryptocurrency markets. The signal appeared in the form of smaller candles forming around the $155 level, indicating a decrease in selling pressure.
Current market data reveals that Solana is trading at $153.18, representing a slight decline of 0.68% over the past 24 hours. However, the cryptocurrency has experienced a larger drop of 13.31% over the previous seven days.
Trading volume reached $3.23 billion over the past 24 hours, indicating continued market interest despite the price weakness.
The cryptocurrency has stabilized in a weekly trading range between $151.03 and $178.72, with an immediate support level at $152.71 and resistance at $158.62. Market participants are closely monitoring SOL's ability to maintain its position above the psychological support level of $150.
■ SOL traders are preparing for multiple scenarios
Professional trader QuantJB has begun accumulating swing and spot trading positions on Solana in anticipation of various market outcomes. The analyst identified a potential low target in the $130 to $140 range if the previous low of $150 fails to hold as support.
This approach reflects a thoughtful strategy that considers both bullish and bearish scenarios. QuantJB indicated plans to reduce trading positions if SOL falls below critical support levels, demonstrating risk management principles under volatile market conditions.
