Solana technical analysis hints at a buy signal for SOL
The post Solana technical analysis hints at a buy signal for SOL appeared on BitcoinEthereumNews.com.
Solana (SOL) is currently trading in the red, impacted by a general bearish market sentiment, but an analyst has outlined the token’s potential path to new highs. Analysis shared by Ali Martinez in a post on X on September 6 indicated that the decentralized finance (DeFi) token has been trading within a parallel channel since April, consolidating its price between defined support and resistance levels. According to Martinez, Solana’s technical indicators suggest a possible upward movement. Specifically, the TD Sequential indicator, which is used to spot potential trend reversals, signals a possible buy opportunity for the asset, particularly on the daily chart. The expert pointed out that the indicator appears near the channel’s lower boundary, which is a crucial support level for the cryptocurrency. Therefore, if Solana rebounds from this support, the price could move toward the middle boundary at $154 and potentially the upper boundary around $187. SOL price analysis chart. Source: TradingView/Ali Charts Given the current bearish sentiment, Martinez noted that investors should exercise caution. In his view, if Solana closes below the lower boundary of the parallel channel, currently at $126, it could signal a significant correction in its price. If this bearish scenario plays out, SOL could drop to lower levels of $110 or even $90. SOL’s key accumulation zones to watch Another analysis shared by a crypto analyst under the pseudonym Unknown Trader further highlighted SOL’s potential losses. The analyst suggested that the asset could plunge and establish support between $83 and $77. SOL price analysis chart. Source: TradingView According to this analysis, the zone represents an accumulation area where buyers may step in to defend the price. Notably, this region has historically seen buying interest, and if sustained, it could lead to a rebound in early 2025. Failure to hold this zone could see…
Filed under: News - @ September 6, 2024 5:19 pm