Solana (SOL) Price Indicates Signs of Exhaustion
The Tom DeMark Sequential Indicator, also known as the TD Sequential, is showing a bearish signal for SOL. It has presented a green nine candlestick on Solana’s weekly chart, indicating a potential trend reversal. Additionally, the Relative Strength Index (RSI) is in the overbought territory at 75, suggesting a corrective price pullback.
Potential Correction and Profit-Taking
If these bearish signs come to fruition, Solana may experience a spike in profit-taking, leading to a correction that could last for one to four weekly candlesticks.
Understanding the TD Sequential Indicator
The TD Sequential is a technical analysis tool designed to identify trend exhaustion points. It focuses on two components: TD Setup and TD Countdown. Its main purpose is to detect overextended trends that are likely to reverse.
Solana Price Prediction: Downswing Before Higher Highs
Using the Fibonacci Retracement Indicator, potential support and resistance levels can be identified. Based on this tool, selling pressure could push Solana down to the 78.6% retracement level at $47.6. If this support level fails, a steeper correction to the 61.8% retracement level at $35.8 may occur.
Conclusion: Breaking the Pessimistic View
To negate the bearish outlook, SOL’s price must close above the recent high of $68.4 on a weekly candlestick. This could attract interest from sidelined investors and potentially drive Solana’s price to a new yearly high of $108.
Hot Take: Will Solana Overcome its Exhaustion?
Solana has seen impressive price gains, but signs of exhaustion and potential correction are emerging. The TD Sequential Indicator and RSI indicate a possible trend reversal. However, if SOL can break through its recent high and attract investor interest, it may surpass expectations and reach new highs. Keep an eye on Solana’s price movement to see if it can overcome its current exhaustion.
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