Solana (SOL) is staging a possible comeback, rising 1% to $187.43 after triggering a TD Sequential buy signal at $178. This technical indicator, widely used to identify trend reversals, has sparked renewed bullish sentiment among traders, especially as SOL consolidates above the key level of $180. The 4-hour chart shows a weakening bearish momentum, with candlesticks losing strength—an initial sign that sellers are losing control. A green arrow under the last bearish candle, along with a black arrow confirmation, adds credibility to the bullish thesis. Solana's price action is forming higher lows, suggesting that strength is building for a potential breakout towards $188–$190.
However, the bullish narrative for SOL is tempered by growing internal tensions in the crypto space, especially with rising security concerns. Are Ethereum-based scams threatening the integrity of the Solana ecosystem? Community sentiment has become cautious following alerts from prominent Solana contributor Dean Little. He highlighted the risk of Ethereum 'opportunists' exploiting Solana's fast and accessible infrastructure for scams, potentially undermining trust and driving away long-term users. This concern is not unfounded, as Solana has seen its daily active addresses drop by 16% in the last week, with the total value locked (TVL) in DeFi decreasing by 8%. While July was strong, with $9.85 billion in TVL and $82 billion in DEX volume, signs of cooling engagement coincided with SOL's price retreating from its high of $206.
Traders are keeping an eye on a breakout as sentiment and technical aspects collide. Despite the volatility, the TD Sequential buy signal provided technical support. SOL is holding the 20-day EMA near $178, a key dynamic support. Retail long positioning has increased, and open interest is rising, suggesting that traders are preparing for a move. While SOL struggles for control above $180, a sustained close above $190 could reignite momentum. Still, with Ethereum-based scams casting a shadow, traders should remain vigilant. Upcoming sessions may determine whether Solana's bullish setup leads to a breakout or succumbs to broader skepticism.