Solana (SOL) could be about to retrace, with a sell signal appearing on the TD Sequential chart, according to new data released today by market analyst Ali Martinez.
This chart is normally utilized by professional traders to spot potential turning points in the market trends of a particular asset.
SOL May Lose Momentum
Solana (SOL) has been seeing an uptrend over the past two weeks, with its price currently trading at $149.94.
The new data shared by Ali shows that the altcoin is likely to witness a correction to the $146 level. The sell signal (as displayed by the TD Sequential index) suggests that the asset’s ongoing upward momentum could lose its steam, and a downturn price movement is looming.
This sell signal gives SOL traders a hint to think about recouping gains or even launching short positions to take advantage of the imminent correction.
The data identified the $146 mark as a possible pullback price target. This means that if the sell indicator happens as projected, Solana’s value could fall to this mark or around this region before identifying a possible support.
Solana Price Updates
Solana (SOL)’s value is currently lingering around $149.94, up 2.7% from yesterday, as buyers try to defend crucial support. However, what is important is where the asset is moving to, not where it is currently.
Weekly trading timeframe shows SOL is in a bullish trend. Its price has been up 10.4% and 2.3% over the past seven days and two weeks, respectively.
Technical analysis identifies around $132 as the area where the demand zone is sitting. So if the asset takes a deeper retracement, then this region could become highly significant as it has historically attracted buyers capitalizing on market dips.
Despite a potential pullback, Solana remains one of the major L1 protocols with stable user activity in NFTs and DeFi. While the asset’s trading volume has declined by 9.8% over the past 24 hours, it remains healthy, suggesting traders are monitoring this region for a likely price correction.
The RSI had declined to 42.69, meaning the altcoin is neither oversold nor overbought. Amidst its upward movement, the RSI above 40 and 42 suggests the asset is likely to experience a potential price fall to support levels around $145.83 and $144.55 soon.
