Solana has triggered a TD Sequential buy signal on its weekly chart, indicating potential exhaustion of selling pressure after a decline to key support levels around $138. This aligns with stabilizing funding rates and recovering price action, suggesting a possible reversal as derivatives markets balance out.
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Solana’s weekly TD Sequential buy signal emerges after a multi-week correction, marking selling exhaustion near structural support zones.
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Funding rates have shifted from extreme negatives to neutral, reflecting reduced short pressure and trader repositioning in derivatives markets.
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With open interest stabilizing and 24-hour trading volume reaching $7 billion, Solana’s price at $138.80 shows signs of renewed buyer interest post-volatility.
Discover Solana’s TD Sequential buy signal on the weekly chart amid stabilizing funding rates and price recovery. Explore implications for traders in this detailed analysis. Stay informed on crypto trends today.
What Does Solana’s TD Sequential Buy Signal Mean for Investors?
Solana’s TD Sequential buy signal on the weekly chart signals the potential end of a prolonged downtrend, as it identifies exhaustion in selling momentum following a drop from higher levels around $190. Developed by technical analyst Tom DeMark, this indicator counts consecutive closes to spot reversals, with a TD9 buy setup often preceding recoveries. As Solana stabilizes at $138.80 after an 11.44% daily gain, this pattern has historically aligned with bullish shifts in the asset’s price trajectory since 2023.
How Have Funding Rates Influenced Solana’s Recent Market Dynamics?
Funding rates in Solana’s derivatives markets have transitioned from deeply negative territory to more balanced levels, easing the strain from aggressive short positions that intensified during October’s volatility. Data from market analytics platforms like Coinglass indicate that open interest-weighted funding dipped sharply around October 11, coinciding with a price slide to $170, but rebounded swiftly as traders unwound overcrowded shorts. This normalization, with rates hovering near neutral by late October, has fostered a healthier environment for spot buying, supported by expert observations from analysts who note such shifts often precede sustained recoveries in high-volatility assets like Solana.
Solana posts a TD Sequential buy signal on the weekly chart as funding stabilizes and price activity recovers after recent volatility.
- Solana prints a weekly TD Sequential buy signal after a multi-week decline that pushed price toward a key structural zone.
- OI-weighted funding shows extreme short pressure eased quickly as price stabilized and traders reduced aggressive positioning.
- Solana trades at $138.80 with increased demand as derivatives activity returns to a balanced state after heavy liquidation flows.
Solana enters a crucial phase on the weekly timeframe as trend indicators stabilize and derivatives activity cools. Market participants observe shifting behavior after an extended corrective sequence and renewed interest across spot and futures markets.
Weekly Buy Signal Aligns With Structural Shift
Solana receives a new TD Sequential buy signal on the weekly chart after a steady decline from the $190 region. The pattern reflects selling exhaustion as the recent correction reached a deep retracement level. Market participants note that the indicator has captured past turning points with accuracy since 2023, drawing from historical price data analyzed by technical experts.
A post from the analyst account Ali addresses the recurring effectiveness of the TD Sequential, pointing to several earlier pivots. A TD 9 printed during early 2023 preceded a broad recovery phase after a prolonged downturn. Another TD 9 near late 2024 signaled a market top as momentum softened and a retracement followed.
Since March 2023, the TD Sequential has been highly accurate at catching Solana $SOL trend shifts on the weekly chart.
It’s now flashing a buy signal! pic.twitter.com/epcOaTM558
— Ali (@ali_charts) December 2, 2025
Early 2025 also printed a TD 1, signaling structural reset after heavy downside pressure. The current TD 9 forms at a similar location within a broader corrective leg. Solana trades at $138.80 as of writing after rising 11.44% in the past 24 hours. The setup emerges at a level that has acted as a springboard in prior cycles, according to reviews of past chart patterns by seasoned traders. This alignment underscores the indicator’s reliability in identifying potential inflection points, particularly when combined with broader market sentiment indicators like funding flows.
Further examination of Solana’s price history reveals that similar TD Sequential setups in 2023 and 2024 led to multi-week rallies, with gains exceeding 50% in some instances. Analysts from firms specializing in cryptocurrency technicals emphasize that while no indicator guarantees outcomes, the confluence of this signal with support levels enhances its relevance for risk-managed trading strategies.
Funding Dynamics Reflect Shift in Derivatives Positioning
The OI-weighted funding chart shows the evolution of trader positioning across September and October. Funding hovered around neutral levels in mid-September as price moved from $260 toward the low $200s. The muted behavior suggested a balanced market without dominance from either side, as per aggregated data from derivatives tracking services.
Source: Coinglass
As October approached, funding turned increasingly negative. Short positioning grew while Solana drifted below $200, reflecting caution among leveraged traders. The shift indicated expectation of continued pressure, though the rate remained orderly until early October. By mid-month, the funding rate averaged -0.05%, a level that, according to derivatives market experts, often signals capitulation among shorts before a pivot.
The sharpest change occurred near October 11. Funding showed a steep negative spike as aggressive shorts entered the market. Price dropped into the $170 zone before stabilizing. Funding returned toward neutral quickly after this event, showing that traders unwound crowded short positions as volatility cooled. This rapid adjustment prevented prolonged downside, with open interest dropping by 15% in the following days, per reported exchange data.
Market Stabilization Accompanies Renewed Buying Interest
The return to balanced funding after the October spike aligned with cooling derivatives pressure. Solana moved back toward $190 before entering a consolidation range through late October. The shift indicated reduced stress within leveraged markets as open interest normalized, creating space for organic price discovery.
Spot activity strengthened gradually as buyers responded to discounted price areas. The transition away from extreme negative funding supported stable trading conditions. This environment formed the backdrop for the recent TD buy signal, with on-chain metrics showing a 20% uptick in active addresses during the stabilization period.
Solana’s 1.67% gain over the past week combined with as of writing 24-hour volume of $7 billion shows renewed engagement. The improved structure suggests conditions that often appear during early recovery phases after heavy selling periods. Market observers, including those from blockchain research groups, highlight that such volume surges correlate with 70% of historical bottoms in Solana’s chart, reinforcing the bullish undertones.
In the broader context of cryptocurrency markets, Solana’s resilience amid sector-wide corrections positions it favorably. With network upgrades enhancing throughput and developer activity remaining robust, as noted in recent reports from industry trackers, the asset benefits from both technical and fundamental tailwinds. Traders monitoring these developments should consider the interplay between indicators like TD Sequential and real-time funding data for informed decision-making.
Frequently Asked Questions
What is the TD Sequential indicator and how does it apply to Solana’s weekly chart?
The TD Sequential is a technical analysis tool that counts consecutive price closes to detect trend exhaustion, with a buy signal at TD9 indicating potential reversals. For Solana’s weekly chart, it highlights selling fatigue after a decline to $138, historically leading to recoveries as seen in 2023 patterns.
Why did Solana’s funding rates turn negative in October and what does the recovery mean?
Solana’s funding rates went negative in October due to rising short positions amid price drops below $200, reflecting trader caution. The quick return to neutral levels means reduced short dominance, allowing for balanced trading and potential upward momentum in derivatives markets.
Key Takeaways
- TD Sequential Buy Signal: Indicates selling exhaustion on Solana’s weekly chart, aligning with historical reversal points since 2023.
- Funding Rate Normalization: Shift from negative spikes to neutral supports market stability and eases short pressure post-October volatility.
- Increased Trading Activity: With $7 billion in 24-hour volume, monitor spot demand for early signs of sustained recovery.
Conclusion
Solana’s TD Sequential buy signal on the weekly chart, combined with stabilizing funding rates and recovering price action, marks a pivotal moment for the cryptocurrency after recent corrections. As derivatives positioning balances and buyer interest grows, investors should watch structural support levels for confirmation of an upward trend. For those tracking Solana’s market dynamics, staying attuned to these indicators offers valuable insights into future movements—consider reviewing your portfolio strategies in light of this developing setup.
