Solana Poised for Breakout Despite Scam Concerns

I believe Solana (SOL) is showing signs of a potential rebound, having increased by 1% to $187.43 after a TD Sequential buy signal appeared at $178. This technical indicator is a commonly used tool by traders to anticipate trend reversals, and it has sparked renewed bullish optimism, especially as SOL remains above the crucial $180 support level. The 4-hour chart indicates a decrease in bearish momentum, with candlesticks weakening, which could be an early warning that sellers are losing their grip. The presence of a green arrow beneath the last bearish candle, confirmed by a black arrow, strengthens the case for a bullish setup. Additionally, the formation of higher lows suggests that the buying pressure is building, hinting at a possible breakthrough towards $188–$190. However, the bullish outlook is complicated by increasing security concerns within the crypto ecosystem. Community sentiment has turned cautious following warnings from Solana contributor Dean Little about Ethereum-based scams targeting Solana’s infrastructure. Such scams could threaten trust within the ecosystem and potentially cause user attrition. Despite these issues, on-chain metrics like a 16% drop in active addresses and an 8% decline in DeFi TVL suggest a cooling down after July’s strong activity, which saw a TVL of $9.85 billion and $82 billion in DEX trading volume. The technical signals, including the support at the 20-day EMA near $178 and rising open interest, show traders are positioning themselves for a breakout. A sustained close above $190 could rejuvenate bullish momentum, but the lingering threat of Ethereum-based scams and broader distrust data urges caution. The upcoming sessions will be decisive — whether Solana can capitalize on its technical weakness to push higher or will be pulled down by security worries and ecosystem skepticism.