2 Key Reasons for Potential Retreat
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Solana (SOL) is among the top-performing cryptocurrencies in the market. It has recorded a price increase of over 500% year-to-date, climbing from $9.9 to $68.4. Despite these substantial gains, SOL could be poised for a brief correction before the uptrend resumes. SOL Price Shows Signs of Exhaustion The Tom DeMark Sequential Indicator, commonly called the TD Sequential, suggests that SOL may have reached a local peak. It has presented a green nine candlestick on Solana’s weekly chart, a bearish formation. This sell signal aligns with the Relative Strength Index (RSI) hovering with the overbought territory. The RSI stands at 75 on Solana’s weekly chart, indicating a potential trend reversal or corrective price pullback. If these bearish signs materialize, Solana could see a spike in profit-taking, triggering a correction that may last one to four weekly candlesticks. Solana (SOL) Price Chart. Source: Tradingview The TD Sequential is a technical analysis tool designed to identify potential buying and selling opportunities by predicting trend exhaustion points. It is based on a series of numbers and rules, focusing on two components: TD Setup and TD Countdown. The indicator’s main purpose is to detect trends that have become overextended and are likely to reverse. Read More: Top 6 Projects on Solana With Massive Potential Conversely, the RSI serves as a momentum indicator, comparing the magnitude of an asset’s gains on its upward price days to the magnitude of its losses on its downward price days. Solana Price Prediction: A Downswing Before Higher Highs One can identify potential support and resistance levels by employing the Fibonacci Retracement Indicator. This technical tool uses a series of numbers to help predict potential reversal points after a significant price movement. It does so by dividing the vertical distance between an asset’s high and low points by key Fibonacci ratios,…
Filed under: News - @ December 5, 2023 7:26 pm