What to know:
- Ali Charts identified a monthly TD Sequential buy signal, suggesting that Solana’s prolonged bear market may be nearing exhaustion.
- The chart shows sellers losing momentum as SOL stabilizes near key support between $70 and $80, strengthening reversal expectations gradually.
- Technical confirmation still requires higher monthly closes, stronger volume, and sustained higher highs before bullish momentum gains broader confidence.
Crypto analyst Ali Charts has identified a bullish technical signal on Solana’s monthly chart, pointing to a potential end of the cryptocurrency’s prolonged bear market. According to Ali Charts, the TD Sequential indicator has flashed a buy signal, suggesting bearish momentum may be fading as SOL trades near $76.62.
According to Ali Charts, the monthly chart has completed a TD Sequential nine-count, a pattern that technical analysts often associate with trend exhaustion. While the signal does not guarantee an immediate rally, it suggests that the sustained selling pressure that weighed on Solana may be losing strength.
The chart also shows Solana falling from above $200 before stabilizing within the $70 to $80 range. Moreover, recent monthly candles have become noticeably smaller, indicating that sellers are no longer dominating price action as aggressively as before.
Monthly Signal Suggests Long-Term Trend Could Be Changing
The TD Sequential indicator, created by market technician Tom DeMark, helps identify when an existing trend may be approaching exhaustion. Signals appearing on the monthly timeframe generally carry greater importance because they reflect long-term market behavior instead of short-term price swings. According to Ali Charts, the completed buy setup could mark a macro trend shift or even signal the end of Solana’s prolonged bear market.
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Besides the completed nine-count, the chart highlights several months of consolidation near current levels. Consequently, the lack of aggressive new lows suggests that selling momentum has weakened while buyers defend key support around $70.
Many analysts interpret prolonged consolidation following a major decline as a potential accumulation phase. Nevertheless, stronger confirmation usually requires higher monthly closes, increasing trading volume, and the formation of higher highs and higher lows.
Overall, the latest monthly TD Sequential buy signal represents an early indication that Solana’s long-term bearish momentum may be nearing exhaustion. Although confirmation remains necessary, the technical setup has renewed market interest as investors monitor whether SOL can establish a broader recovery.
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