Solana’s Bullish Breakout? TD Signal vs. Ethereum Scam Threat
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Solana (SOL) shows potential for a bullish breakout, driven by a TD Sequential buy signal and price consolidation above $180. Technical indicators suggest diminishing bearish momentum and building strength, with higher lows forming on the 4-hour chart. A sustained close above $190 could reignite momentum. However, this bullish narrative is challenged by growing concerns about Ethereum-based scams targeting Solana's infrastructure. Prominent Solana contributor Dean Little warned about “grifters” exploiting Solana's speed and affordability for fraudulent activities. This concern is reflected in Solana's recent metrics: daily active addresses have fallen 16% in a week, and DeFi total value locked (TVL) dipped 8%, although July showed strong figures ($9.85B TVL and $82B in DEX volume). The price has retraced from its $206 high. Despite the technical indicators suggesting a potential upswing and increased retail long positioning, the looming threat of scams creates uncertainty. The interplay between positive technical signals and negative sentiment surrounding scams will determine whether Solana experiences a sustained breakout or succumbs to broader market distrust. Traders are advised to remain cautious and monitor the situation closely. The coming days will be crucial in deciding Solana's immediate future. The $180 level serves as a key support level, with the 20-day EMA providing further technical support. Open interest is rising, indicating traders are preparing for a significant price movement.
