In a recent development, a widely-followed momentum indicator has flipped bullish for Solana (SOL), a top Ethereum rival, according to crypto analyst Ali Martinez. Martinez, who boasts a significant following of 70,400 on the social media platform X, pointed out that the Tom DeMark (TD) Sequential Indicator has generated a buy signal on Solana’s daily chart.
The TD Sequential Indicator is a popular tool used by traders to predict potential trend reversals in tokens based on the closing prices of their 13 previous bars or candles. Martinez’s analysis suggests that Solana could be poised for a rebound from the lower boundary of its current channel, with potential targets at $154 and $187.
At the time of writing, Solana is trading at $123.22, down nearly 6% in the past 24 hours and almost 10% in the past seven days. Despite this short-term downturn, Martinez’s bullish call could signal a potential reversal in the asset’s fortunes.
However, the analyst also cautioned that a sustained close below the channel’s lower boundary at $126 could trigger a significant correction for Solana, potentially pushing the asset down to the $90-$110 range. This warning highlights the importance of monitoring Solana’s price action closely in the coming days.
Martinez also noted that the broader digital asset market is currently experiencing “extreme fear,” as indicated by the Crypto Fear & Greed Index. This sentiment gauge, which ranges from 0 to 100, suggests that the market is currently oversold, which could be a bullish sign for Solana and other cryptocurrencies.
Key Takeaways:
• Solana’s TD Sequential Indicator has generated a buy signal on its daily chart.
• Analyst Ali Martinez sets potential price targets at $154 and $187.
• A sustained close below $126 could trigger a significant correction for Solana.
• The broader digital asset market is experiencing “extreme fear,” which could be a bullish sign.
As the cryptocurrency market continues to evolve, it will be important to monitor Solana’s price action and the broader market sentiment to determine whether Martinez’s bullish call will play out.
Disclaimer
Readers are encouraged to conduct their own research and consult with a financial professional before making any investment decisions based on this content.
