according to Data from CoinMarketCap, Solana (SOL) performed somewhat positively in the last day, posting a market gain of 1.37%. This price increase, although small, is very encouraging for investors given the bearish form Solana stock has seen in the past week where it lost 8.11% of its market value. Interestingly, cryptocurrency analyst Ali Martinez posits that SOL can maintain its current positive performance after detecting a buy signal.
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Solana hits critical support at $141, cascade hints at TD on higher prices
Via his handle X on Saturday, Ali Martinez male Solana recently fell to a major support level at $141. According to the analyst, this decline led to the generation of a buy signal through the TD serial indicator.
#Solana It hit a key support level at $141, with TD Sequential showing a buy signal on $ sol Daily chart! If this support continues #Sol It can rebound for one to four daily candlesticks. pic.twitter.com/AjQX8CGf1d
– Ali (@ali_charts) June 15, 2024
For context, the Tom DeMark Sequential indicator is a technical analysis tool used to identify potential turning points in the price of an asset. The primary goal of TD Sequential is to predict market reversals and trends by calculating a series of price bars.
Following the bearish pattern achieved by Solana last week, Martinez stated that the token price drop to $141 indicates a potential trend reversal according to signals from TD Sequential. Martinez assumed that if the buy signal holds true and $141 remains a strong support level, SOL can sustain higher prices over the next 1-4 days.
Interestingly, since Solana price reached the identified support level, it has risen over 3% to trade above the $145 price mark.
If SOL maintains the same level of price growth over the next four days, the altcoin is expected to reach a price tag of at least $158. However, there is critical resistance at the $149 price area. Sufficient selling pressure at this price could force SOL to resume its downtrend.
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SOL pricing overview
At press time, Solana is trading at $145.16 after a 10.25% decline over the past month. However, the altcoin remains one of the best performing major cryptocurrencies in 2024 with a combined market gain of 43.5% throughout the year.
Overall, Solana is seen as an asset to look out for in the expected crypto upside after its performance in the recent bull cycle where it rose from around $3.5 to a peak price of $249.98. Additionally, Solana boasts a robust meme ecosystem valued at $7.46 billion Which could also contribute to stimulating the token price to new heights in the coming months.
Featured image from Forbes, chart from Tradingview