Top crypto analyst, Ali Charts, has issued a warning regarding Solana (SOL). He noted that the TD Sequential indicator is flashing sell signals on daily, four-hour, and hourly charts. This could indicate that SOL’s price might face a downturn. His analysis of these charts provides insights into what might happen next for SOL.
What you'll learn 👉
Understanding TD Sequential Indicator
This indicator is a technical analysis tool used to detect possible price reversals. It works by counting a sequence of price bars and indicating a possible reversal when a certain pattern is achieved. When a ‘9’ candle appears, it frequently indicates that the trend has become overextended and that a correction is impending.
Solana (SOL) Price Analysis
The daily chart for SOL shows a strong upward trend, marked by mutiple green candles. The price has risen from approximately $126 to $185.35, indicating a bullish rally.
The TD Sequential indicator has presented a sell signal, typically marked by a ‘9’ candle, suggesting potential exhaustion of the current upward trend. The resistance level to watch is around $187, where the upward momentum might face a challenge.
The four-hour chart reflects the daily chart’s bullish trend but provides more detailed information. The price has risen from around $132 to $186, supporting the positive sentiment.
However, a TD Sequential sell signal has appeared, indicating a potential reversal or consolidation period. Key resistance and support levels are around $187 and $171, respectively, with the latter potentially acting as support if a pullback occurs.
The hourly chart offers an even closer look at SOL’s price action. It shows a series of green candles pushing the price up from about $171 to $185.36. Again, the TD Sequential indicator has issued a sell signal.
This repeated signal across different time frames strengthens the likelihood of an impending correction. Immediate levels of interest are $186 as resistance and $182 as support, crucial for traders making quick decisions.
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Bullish Solana Perception
Despite this caution, as previously reported by Captain Altcoin, Ali had predicted a possible 900% SOL surge to $1000. This is in play, with the token trading at $177.74 today with a trading volume of $4,112,397,004. This is a 3.55% and a 16.50% price rise in the last day and week.
Implications of the Sell Signals
A sell signal on the TD Sequential indicator suggests that the upward trend might be overextended, indicating a potential price correction. This is particularly significant when sell signals appear across multiple time frames, as it indicates a broader consensus among traders.
The analysis by @ali_charts and the charts provided suggest that SOL has experienced a robust bullish trend across the 3 time frames. However, the TD Sequential sell signals on all three suggest caution. Traders should watch the resistance levels around $187 closely, as these could be points where the price might face selling pressure.
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