Solana is showing an early technical signal that its prolonged bearish trend could be approaching a turning point, even as SOL remains under pressure near $74 and leveraged traders absorb millions of dollars in liquidations.
A key monthly indicator, the TD Sequential, has generated a “9” buy signal for SOL, raising speculation that selling momentum may be reaching exhaustion. However, analysts caution that Solana still needs to reclaim several important resistance levels before a broader bullish reversal can be confirmed.
Solana’s monthly chart signals potential trend reversal
According to crypto analyst Ali Martinez, Solana’s monthly TD Sequential indicator has flashed a potential buy signal following an extended period of declining prices.
SOL has fallen dramatically from levels above $245 to the mid-$70 range, putting significant pressure on investors who entered during the previous market expansion.
The TD Sequential is commonly used by traders to identify potential exhaustion points in established trends. A “9” setup appearing after a prolonged decline can suggest that bearish momentum is weakening and that the market may be approaching a reversal zone.
Because the latest signal has appeared on the monthly timeframe, traders may view it as more significant than signals generated on shorter-term charts.
Still, a technical signal alone does not confirm that a bottom has formed.
$80-$85 becomes the first major test
For Solana to strengthen the bullish reversal case, SOL would first need to recover the $80-$85 resistance region.
A sustained move above this area could indicate that buyers are beginning to regain control.
The more important macro level sits around $100. A convincing monthly close above that threshold could provide stronger evidence that Solana is transitioning from a prolonged corrective phase into a broader recovery.
On the downside, the $70-$75 region remains crucial.
If SOL decisively loses this support zone, the bullish TD Sequential setup could weaken considerably, potentially opening the door to a deeper decline toward approximately $60.
Previous bullish signal faced heavy resistance
The monthly TD Sequential is not the only technical indicator recently suggesting a possible change in Solana’s trend.
Earlier, the SuperTrend indicator on SOL’s three-day chart reportedly turned bullish, producing its first buy signal since October.
The previous bearish SuperTrend signal preceded a substantial correction, making the latest reversal noteworthy.
However, Solana has struggled to translate improving technical signals into sustained upward momentum, highlighting the significant resistance still facing buyers.
Exchange supply and network activity offer positive signals
Beyond price charts, some underlying market indicators have also attracted attention.
According to the cited data, approximately 100 million SOL moved out of exchange reserves between July 3 and July 11. Declining exchange balances can sometimes reduce immediately available selling supply, although withdrawals do not necessarily mean investors intend to hold long term.
At the same time, Solana reportedly added around 1.4 million new addresses within three weeks, suggesting continued network activity despite weaker token prices.
If network growth continues while selling pressure declines, these trends could provide additional support for a longer-term recovery narrative.
More than $13M in SOL long positions liquidated
Short-term market conditions, however, remain challenging.
SOL liquidations reached approximately $14.37 million over 24 hours, with bullish traders taking the overwhelming majority of losses.
Long positions accounted for roughly $13.06 million, representing about 91% of total liquidations, while short liquidations stood near $1.31 million.
The imbalance indicates that leveraged traders betting on an immediate SOL recovery were caught by the latest decline.
Such liquidation events can amplify downward volatility as exchanges automatically close leveraged positions when traders no longer have sufficient collateral.
Can SOL establish a bear-market bottom?
Solana now sits at an important technical crossroads.
The monthly TD Sequential buy signal suggests that the extended decline may be losing momentum, while exchange flows and network activity provide additional factors for bulls to monitor.
However, confirmation remains critical.
A recovery above $80-$85, followed by a sustained move toward and above $100, would significantly strengthen the case for a larger trend reversal. Losing the $70-$75 support zone, meanwhile, could invalidate the emerging bullish structure and increase the risk of another leg lower.
For now, the signal should be viewed as an early indication of possible trend exhaustion rather than confirmation of a market bottom.
