Solana (SOL) Network Flashes Sell Signal, Analyst Issues Warning for SOL Traders

The Solana (SOL) network, a top-tier web3 ecosystem aiming to dethrone Ethereum (ETH) as the top smart contract blockchain, has experienced a significant rise in on-chain activity in recent times.

Solana (SOL) price has failed to continue its recent bullish momentum after invalidating a potential breakout attempt. The altcoin’s price has dropped over 21% in the past two weeks, sparking concerns among traders.

However, Solana’s price has rebounded over 15% in the last 24 hours, showing some resilience after the recent sell-off. At the time of writing, Solana’s price is trading at $138.

Solana’s hourly price has approached a crucial point that could either yield further bullish rebound or capitulation ahead. The TD Sequential indicator has flashed a sell on SOL’s hourly time frame.

This technical pattern usually anticipates a one to four candlesticks correction, expecting Solana’s price to retrace towards the range between $130-$135.

However, breaking the risk line at $146 would invalidate this signal, potentially driving $SOL up to $150-$166.

Solana’s daily DEX trading volume hit a new all-time high on Tuesday, surpassing $4 billion for the first time.

This surge in on-chain activity comes amid heightened fear of further crypto sell-off in the coming weeks. Notably, Solana’s price has dropped more than 21 percent in the past two weeks.

However, the large-cap altcoin, with a fully diluted valuation of about $80 billion, rebounded over 15 percent in the last 24 hours to trade around $138 on Tuesday during the mid-London session.

Solana’s network, with more than $4.4 billion in total value locked (TVL) and over $3.5 billion in stablecoins market cap, has gradually outshone Ethereum’s Web3 activity.

Despite lacking in the spot ETF market, Solana’s on-chain activity has gradually grown, fueled by its meme coin industry.

Consequently, after consolidating in the past seven months, the SOL/ETH pair is on the verge of bullish breakout to a new all-time high.