An analyst has explained how Solana may be at risk of a correction based on the data of two SOL technical indicators.<\/p>\n
In a new post<\/a> on X, analyst Ali has discussed why SOL could be at risk of seeing a retracement shortly. The analyst has referred to two technical indicators for the coin: the TD Sequential and RSI.<\/p>\n The first of these, the Tom Demark (TD) Sequential<\/a>, is a metric generally used for spotting probable reversal points\u00a0in any asset\u2019s price. The indicator has two phases, the first of which is a nine-candles-long \u201csetup\u201d phase.<\/p>\n When nine candles of the same polarity are in following a reversal in the price, the TD Sequential setup is said to be complete, and the asset could be assumed to have reached a likely point of a trend shift.<\/p>\n Naturally, if the candles are green, the setup\u2019s completion would point towards a top, while red candles would imply a bottom formation. Once the setup is over, a thirteen-candles-long countdown phase starts. At the end of these thirteen candles, another probable change of direction happens for the chart.<\/p>\n According to Ali, a setup phase has recently formed for Solana. Below is the chart shared by the analyst that shows this TD Sequential pattern in the weekly price of the cryptocurrency.<\/p>\n\n The graph shows that the TD Sequential setup has recently been completed with green candles, implying that the price may have already reversed toward a bearish trend.<\/p>\n In the same chart, Ali has also attached the data for the second relevant indicator: the Relative Strength Index (RSI)<\/a>. The RSI is a momentum oscillator that keeps track of the speed and magnitude of the recent changes in an asset\u2019s price.<\/p>\n This indicator determines whether the asset is undervalued or overvalued at the moment. When the metric has a value greater than 70, it can be a sign that the asset is overbought, while it being under the 30 mark suggests an oversold condition.<\/p>\n As is apparent from the graph, the Solana RSI recently broke above the 70 mark and has remained inside the territory, suggesting that SOL has been overvalued recently.<\/p>\n This would mean that two bearish signals are looming over the cryptocurrency\u2019s head right now. \u201cA spike in profit-taking could trigger a retracement to $47.6,\u201d says the analyst. From the current price, such a potential correction to $47.6 would mean a drawdown of over 20%.<\/p>\n Solana\u2019s fate may yet be averted; however, as the analyst explains, \u201cSOL would have to print a weekly candlestick close above $68.4 to invalidate the bearish outlook and aim for $108.\u201d<\/p>\n Solana had rallied above the $65 mark yesterday, but the asset has already seen a pullback as it\u2019s now trading around $60.<\/p>","protected":false},"excerpt":{"rendered":" <\/p>\n An analyst has explained how Solana may be at risk of a correction based on the data of two SOL technical indicators.<\/p>\n In a new post<\/a> on X, analyst Ali has discussed why SOL could be at risk of seeing a retracement shortly. The analyst has referred to two technical indicators for the coin: the TD Sequential and RSI.<\/p>\nSOL Price<\/h2>\n
Solana Has Recently Observed The Formation Of Two Bearish Signals<\/h2>\n