SOL Price Prediction Turns Bearish, Could Push It to $45?
Solana (SOL) has emerged as a significant player in the dynamic cryptocurrency world, exhibiting a significant upward trend and bringing significant gains. Although the SOL price has adjusted slightly by 3.6% over the past 24 hours, the blockchain platform's native token has risen by a massive 43% over the past 14-day period. However, the sustainability of these gains could be threatened, as following last year's impressive 346% spike, it looks set for SOL prices to fall sharply and make a deep correction.
Cryptocurrency analyst Ali Martinez reveals the potential challenges facing SOL. Martinez highlighted the TD Ordinal Indicator, which currently shows a sell signal on the SOL weekly chart. Developed by market technician Thomas DeMark, the TD Sequence Indicator is a technical analysis tool used to identify potential trend reversals or exhaustion points in price movements. This is shown in Figure 1.
The indicator consists of continuous candlesticks that meet specific criteria based on time and price movements. It looks for specific patterns in price action, including the permutations of successive highs and lows and the general trend direction. When the TD Sequence indicator produces a sell signal, it indicates that the coin has reached the exhaustion point in its uptrend, which may indicate an imminent correction or reversal.
Martinez said that if the bearish pattern depicted by the TD Ordinal Indicator is confirmed, market participants may see a drop in the SOL price, which could push it to $45 or even to $30.
Although there may be a correction in the price in the coming days or weeks, Solana has shown impressive growth on various fundamental metrics, as shown by the data provided by Token Terminal. In terms of market capitalization, SOL currently has a circulating volume of $24.62 billion, an increase of 138.78%. In addition, the fully diluted market capitalization is expected to be $32.77 billion, with a growth rate of 134.29%.