Solana May Face Correction Based on Technical Indicators
An analyst has highlighted the possibility of a correction for Solana (SOL) based on two technical indicators: the TD Sequential and RSI. The TD Sequential is used to identify potential reversal points in an asset’s price, consisting of a setup phase followed by a countdown phase. The analyst believes that a setup phase has recently formed for SOL, indicating a likely change in trend. Additionally, the RSI, which measures the speed and magnitude of price changes, suggests that SOL has been overvalued as it broke above the 70 mark. These bearish signals could trigger a retracement to $47.6, representing a drawdown of over 20%. However, SOL would need to close above $68.4 to invalidate this outlook and aim for $108.
SOL Price Update
After reaching above $65, Solana has experienced a pullback and is currently trading around $60.
Hot Take: Solana Faces Potential Correction as Bearish Signals Emerge
Analyst Ali warns that Solana may be at risk of a correction due to the formation of two bearish signals. The TD Sequential indicator indicates a potential trend shift, while the RSI suggests overvaluation. If these signals materialize, SOL could experience a retracement to $47.6, representing a significant drawdown. However, if SOL manages to close above $68.4, it could invalidate the bearish outlook and aim for $108. Traders should closely monitor these technical indicators to make informed decisions regarding their SOL positions.
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