According to U.Today, a key technical indicator has issued a short-term warning for Solana's price. Analyst Ali Martinez noted that the TD Sequential indicator has presented a sell signal on Solana's four-hour chart. Solana had rebounded from lows of $136 on August 16 after three consecutive days of declines. The cryptocurrency extended its rebound for two days before retreating in today's session. The timing of the sell signal is significant as it may coincide with short-term profit-taking. However, market conditions are unpredictable, and various factors could influence Solana's price direction. The appearance of a sell signal on the TD Sequential does not guarantee an immediate price drop but might indicate a profit-taking risk.
This warning comes at a time when the cryptocurrency market is facing uncertainty ahead of a crucial Federal Reserve release. The July Federal Reserve meeting minutes are set to be released on Wednesday this week. Traders will also be watching for the annual economic policy conference in Jackson Hole, where Fed Chair Jerome Powell is slated to speak. Markets have fully priced in a Fed rate decrease in September, although the odds of a 50 basis point reduction are lower.
At the time of writing, Solana was down 1.75% in the last 24 hours to $142. If the current decline continues, Solana might fall below $130, a critical support level. A drop below $130 could indicate intensifying selling pressure, potentially leading Solana to retest the key support level of $116. Bulls are expected to defend this level vigorously, as a breach below it could trigger a fresh decline. If Solana maintains its current level, bulls will attempt to push the price above the moving averages. The positive trend is expected to gain momentum above $163 and could even reach $193.
