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Because the starting of 2024, the worth of Solana (SOL) has not been in a position to repeat the power with which it rose final December. Whereas Bitcoin and most altcoins have carried out positively over the previous few weeks, the SOL token's momentum has been largely weak and, at greatest, sideways.
Nonetheless, a well-liked crypto analyst on X has come ahead with a good forecast for the worth of Solana, which has sounded a purchase alarm for the cryptocurrency.
Will we see an increase within the worth of Solana?
Outstanding crypto analyst and dealer Ali Martínez took to the X platform to share a bullish prediction for the worth of Solana over the subsequent few days. The evaluation revolves across the “Tom DeMark” (TD) Sequential Indicator, which helps to establish potential factors of pattern exhaustion and worth reversal.
The TD Sequential Indicator in the end follows two phases, specifically the “setup” and the “countdown” part. As proven within the chart beneath, Solana worth has simply accomplished the setup part, which normally consists of 9 candles of the identical kind.
Chart exhibiting SOL worth forming the "setup" part on the day by day timeframe | Supply: Ali_charts/X
Usually, completion of this part indicators a possible pattern reversal for the asset. The kind of candles forming the “setup” determines the path of the reversal (i.e., purple candles will counsel a backside for the asset, whereas inexperienced candles will counsel a high).
Utilizing “Setup”, Martinez revealed in his submit that the TD Sequential indicator is flashing a purchase alarm on the Solana day by day worth chart. In accordance with the analyst, this sign suggests a possible upward motion for the worth of SOL – consisting of 1 to 4 candlesticks.
Can SOL worth return above $110?
Solana's present worth motion seems to be following Martinez's bullish forecast. On the time of writing, SOL is priced at round $104, representing a rise of over 3% over the previous day.
Although the token's worth appears to be recovering properly, the current features aren’t sufficient to erase final week's losses. In accordance with information from CoinGecko, the SOL token has declined by about 4% prior to now week.
With the current bullish forecast, traders could also be hoping that the cryptocurrency can at the very least recapture the $110 mark. Though it has efficiently crossed this degree a number of occasions, the Solana token has largely struggled to remain above $110.
However, with a market capitalization of over $45.65 billion, SOL has maintained its place among the many high 5 largest property within the cryptocurrency sector.
Solana worth exhibiting indicators of restoration on the day by day timeframe | Supply: SOLUSDT chart on TradingView
Show picture from Adobe Inventory, charts from TradingView