Solana is currently forming a TD sequential sell signal on the weekly chart and this analyst believes that a decline to $30 could occur for SOL.
Solana weekly chart is forming a TD sequential sell signal
THE “Tom Demark (TD) Sequential» refers to a popular technical analysis tool used to identify likely highs or lows in the price of a given asset or product.
This indicator is composed of two phases: the setup phase and the countdown phase. In the first case, candles of the same polarity are counted up to 9. After this ninth candle, the metric signals that a probable reversal in price is happening now.
Naturally, if the pattern occurs with green candles, the signal would be for a likely top, meaning it could be time to exit the asset. On the other hand, the opposite candle type would imply that a reversal of the downtrend could take place.
As analyst Ali explains in a new job on
The chart below shared by the analyst shows this signal forming in the price of SOL:
The pattern currently forming in the coin's weekly price chart | Source: @ali_charts on X
From the chart, it is visible that this Solana signal could be a sell signal, as the TD Sequential setup phase is forming with green candles. “While the week is just beginning, the coming days could be crucial for traders looking for profit opportunities,” notes Ali.
As mentioned previously, this phase is not the only one that the indicator has; there is also the “countdown phase”. This second phase lasts 13 candles and begins just after the configuration is complete.
Once these 13 candles cross, one could again assume that the price of the asset has reached a state of trend exhaustion and a reversal could be imminent.
“If the bearish formation is confirmed, we could see a drop in the SOL towards $45, or potentially down to $30,” explains the analyst. The first target would result in a drop of more than 21% from the current price of the coin, the second 47%.
It now remains to be seen whether the downtrend will ultimately continue for the cryptocurrency. If so, TD Sequential could once again be the metric to watch as the end of the countdown phase could result in a reversal in the asset’s price once again.
Solana had reached $68 last week, but the cryptocurrency has since seen a significant decline to the $57 mark. Nonetheless, despite this decline, the asset has seen profits of over 100% over the past month, demonstrating just how strong SOLs are. 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