Solana (SOL) price is currently in a phase of stabilization following a prolonged period of selling pressure, with the price trading at $94.16 at the time of writing. Short-term technical indicators are showing signs of seller exhaustion, with a TD Sequential “9” buy signal appearing on the 4-hour chart. This, combined with a bullish RSI divergence, has shifted attention to whether the current support level can hold.
The TD Sequential Buy Signal on the 4-hour chart suggests that downside momentum may be reaching a point of exhaustion. While this signal does not guarantee a reversal, it often precedes periods of short-term stabilization. Additionally, the price action has been holding within the $93-$94 range in recent sessions, indicating that sellers may be losing control. However, confirmation of a bullish trend requires sustained support above this level.
Furthermore, there is a bullish RSI divergence forming, with the Relative Strength Index showing a higher low despite the price briefly dipping to $93. This divergence implies weakening downside pressure and is typically seen near turning points in the market. Paired with structural support levels, such as the $94 region, this divergence adds significance to the potential for a price recovery.
In terms of key levels, $94.16 is now a critical support level for SOL price. If this level holds, the focus will shift to the monthly open near $105 as a potential recovery target. However, the path higher may not be straightforward, as any failure to defend current levels could lead to lower liquidity zones coming into play. Overall, the risk-reward profile appears to be more balanced than earlier in the decline.
Looking beyond price action, on-chain activity for Solana remains strong, with development activity on the rise and daily active addresses increasing. This suggests underlying network strength even as market sentiment remains cautious. Historically, such divergences between on-chain engagement and price action have preceded trend transitions, although the timing is uncertain.
In addition, trading volume for SOL is cooling, which could indicate the exhaustion of aggressive sellers rather than disinterest in the asset. Similar volume patterns in the past have aligned with base-building phases, suggesting that SOL price may be on the cusp of a recovery or extended consolidation period.
In conclusion, Solana price is currently balancing between technical exhaustion signals and broader market conditions. The sustainability of a recovery or consolidation phase will depend on how price reacts around current support levels in the coming sessions.
