Solana Forms Sell Signal, Decline To $30 Ahead?
21 Novembre 2023 - 4:00PM
NEWSBTC
Solana is forming a TD Sequential sell signal on the weekly chart
right now and this analyst believes a decline to as low as $30
could happen for SOL. Solana Weekly Chart Is In Process Of Forming
A TD Sequential Sell Signal The “Tom Demark (TD) Sequential” refers
to a popular tool in technical analysis that’s used to pinpoint
probable tops or bottoms in the price of any given asset or
commodity. This indicator is made up of two phases: the setup phase
and the countdown phase. In the former, candles of the same
polarity are counted up to 9. After this ninth candle, the metric
signals that a likely reversal in the price is occurring now.
Related Reading: Bitcoin Fees Soar Above Ethereum’s As Investors
Flock To Ordinals-Backed Assets Naturally, if the setup occurs with
green candles, the signal would be for a probable top, meaning that
it could be the time to exit from the asset. On the other hand, the
opposite type of candle would imply a reversal from the bearish
trend may be taking place. As explained by analyst Ali in a new
post on X, the Solana 7-day chart has recently been finishing such
a setup phase of the TD Sequential, suggesting the winds might be
changing for the cryptocurrency. The below chart shared by the
analyst shows this signal forming in SOL’s price: The pattern
currently forming in the coin's weekly price chart | Source:
@ali_charts on X From the graph, it’s visible that this Solana
signal could be a sell one, as the TD Sequential setup phase is
forming with green candles. “With the week just beginning, the
upcoming days could be crucial for traders eyeing profit-booking
opportunities,” notes Ali. As mentioned before, this phase isn’t
the only one that the indicator has; there is also the “countdown
phase.” This second phase lasts for 13 candles and starts right
after the setup is finished. Once these 13 candles are done, the
asset’s price could once again be assumed to have reached a state
of exhaustion in its trend and a reversal may be imminent. “If the
bearish formation gets confirmed, we might see a SOL downswing
towards $45, potentially even dipping to $30,” explains the
analyst. The former target would mean a decline of more than 21%
from the current price of the coin, the latter 47%. Related
Reading: Bitcoin About To Smash The $38,000 Barrier – Decoding the
Next Moves It now remains to be seen whether the bearish pattern
will hold for the cryptocurrency after all. If it does, the TD
Sequential may once again be the metric to watch, as the countdown
phase’s end could lead to a reversal in the asset’s price once
more. SOL Price Solana had gone as high as $68 last week, but the
cryptocurrency has since seen a sizeable drop towards the $57 mark.
Nonetheless, despite this decline, the asset is in profits of more
than 100% in the past month, showcasing just how strong SOL’s
recent bullish momentum has been. The coin is still holding great
returns for the past month | Source: SOLUSD on TradingView Featured
image from Shutterstock.com, charts from TradingView.com
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