Solana Price Rebounds as TD Sequential Flashes Bullish Signal Above $180

Solana (SOL) is showing signs of a potential rebound after a TD Sequential buy signal at $178 triggered renewed bullish sentiment. The cryptocurrency, which had recently pulled back from its July high of $206, surged by 1% to reach $187.43, reaffirming short-term investor optimism.

This rebound follows days of price consolidation above the crucial $180 level, where Solana has repeatedly found support.

Technical analysts interpret the TD Sequential signal, a green arrow below the final red candlestick on the 4-hour chart, as a credible sign of a slowing downtrend and a potential reversal in motion. Smaller bearish candles and the appearance of a black arrow further support the possibility of upward momentum building.

As Solana maintains its footing above $180, traders now closely watch the $188 and $190 levels as breakout targets. A sustained move beyond these could validate the ongoing bullish trend, though $7 intraday swings indicate that the market remains volatile. For now, holding above the 20-day EMA near $178 is key to preserving upward potential.

On-Chain Activity Declines Despite Bullish Price Action

Despite recent price gains, Solana’s underlying network metrics reflect a mixed outlook. Daily active addresses have dropped 16% over the past week, suggesting waning user engagement.

DeFi total value locked (TVL) also saw an 8% pullback, signaling either capital withdrawal or reduced asset values. Nevertheless, July was a strong month overall. Solana’s DeFi TVL had climbed 14% to $9.85 billion, while DEX volumes jumped 30% to $82 billion.

Revenue rose 13% to $4.3 million. These bullish fundamentals helped fuel Solana’s rally from $147 to $206 before the recent retracement.

Current price action hovers near dynamic support at $178. A breakdown could see SOL testing $171, while a push above $186 could target $190 in the short term. Technical traders continue to monitor the 20-day EMA and volume shifts to gauge strength behind the move.

Solana vs Ethereum: Growing Community Tensions

Adding complexity to Solana’s outlook is mounting friction between Solana and Ethereum communities.

On July 31, crypto analyst Dean Little voiced concerns about Ethereum-based scammers exploiting the Solana ecosystem. These warnings have sparked debate over ecosystem integrity and its influence on price sentiment.

Such cross-chain tensions can have real trading implications. A defensive stance from Solana’s original supporters may lead to improved confidence in SOL’s fundamentals, while a flood of low-quality projects could depress sentiment.

Traders should watch SOL/ETH pairs and fear/greed indices for cues, as community-driven narratives often trigger volatile price swings.

Solana’s short-term recovery is promising, but traders must weigh technical signals, on-chain trends, and ecosystem sentiment to navigate this volatile crypto asset effectively.