In recent news, Solana’s value took a 13% nosedive. However, a noteworthy indicator has emerged that suggests a potential uptick in the cryptocurrency’s price trajectory. This signal, spotted on the Tom Demark (TD) Sequential, was pointed out by analyst Ali Martinez.
Martinez highlighted a TD Sequential Buy Signal on Solana’s 12-hour price chart. The TD Sequential is a widely used technical analysis tool that helps to identify possible price reversal points. This indicator operates in two stages: the setup and the countdown.
The setup stage involves counting up to nine identical color candles. These candles do not necessarily have to be sequential. Once the ninth candle appears, the TD Sequential indicates a reversal signal for the asset. If the candles were green, indicating an uptrend, the signal would suggest a bearish reversal. Conversely, red candles lead to a bullish signal.
Following the setup, the countdown stage begins. This stage mirrors the setup, but the count extends to thirteen. After these candles, the asset could be on the brink of another reversal point.
As per Martinez’s chart, Solana’s 12-hour price recently completed a TD Sequential setup phase. Interestingly, the nine candles in this pattern were red, indicating a buy signal for the cryptocurrency. This signal comes after Solana experienced a 13% drop over the last week. It remains to be seen whether this signal will trigger a bullish reversal for the coin.
However, on-chain data suggests a different outcome. Cryptocurrency transaction tracker service, Whale Alert, reported that a SOL whale transferred approximately 2.86 million tokens ($441 million) to the Binance platform. This transfer could potentially have a bearish impact on Solana if the intention was to sell these tokens.
After a bearish trend, Solana’s price currently stands at $153.90.
