Solana (SOL) rebounded above $70, trading up about 2% in the past 24 hours with daily volume surging over 20% to roughly $2.20 billion. The recovery followed a TD Sequential buy signal late last week that lifted the altcoin from $68 to $74, but a sell signal on the 4-hour chart now threatens to cap further gains.
Sell signal at key resistance
The TD Sequential indicator has flashed a sell signal on the 4-hour timeframe as SOL tests its resistance trendline near $75. This level coincides with the 200-period simple moving average, marking a strong supply zone that could trigger a minor pullback to $72 or lower. Despite the bearish short-term signal, the broader structure remains bullish, with Solana showing more strength than Ethereum in recent sessions.
ETF inflows and network activity support
Solana spot ETF inflows turned positive last week, recording net inflows of $7.11 million after a prior outflow of $2.54 million. The shift aligns with the price jump, suggesting ETF capital flows are influencing SOL's movement. Meanwhile, network activity continues to accelerate: daily chain transactions have doubled since January, rising from 60 million to 120 million, according to Artemis data.
Outlook hinges on key levels
The combination of strong on-chain metrics and ETF demand may allow Solana to reset and eventually break above the $75 resistance. However, if SOL dips below $68 — the previous week's higher low — it could extend losses toward $60. The near-term direction depends on how market participants react to the sell signal and whether buying pressure can absorb supply at the resistance zone.