Solana was down 9.4% after hitting an all-time high of nearly $260 on November 6th. A sell signal could result in additional losses. A fall to $216 could be seen as a bullish catalyst for the next move in SOL.
Solana met expectations with an increase of over 65% over the past month. Nevertheless, SOL tokens on high-throughput blockchains could soon catch their breath before resuming an uptrend.
Solana’s uptrend could be slowing down.
Solana may offer the investor next to it a buying opportunity before re-entering price discovery mode.
The 6th largest cryptocurrency by market capitalization appears to have entered a short correction period. Shortly after SOL hit an all-time high of nearly $260 on November 6, the Tom DeMark (TD) sequence indicator gave a sell signal on the 3-day chart.
A bearish pattern develops in the form of a green 9 candlestick indicating a 1-4 3-day candlestick correction.
A surge in take-off at current price levels seems reasonable, especially with the hype surrounding Solana’s Breakpoint conference now waning. As sales orders pile up, SOL may drop to a support level of $216.
Bringing it back to $216 could encourage investors who were standing by to return to the market. This correction can be explained by a reexamination of the x-axis of the ascending triangle containing Solana between August 30 and November 2. Rising buying pressure around these key support points could push the SOL towards $340, achieving the technical model of a bullish target.
It’s worth noting that some low market cap assets appear to be exploding. Chainlink, Litecoin and XRP have surged more than 7% in the last 24 hours. Although Solana’s price movement is unrelated to these assets, upward pressure may still be plentiful.
In this particular case, we should note the recent historical high of $260. A rise above this price range could negate the short-term bullish outlook and lead to further gains. In this case, the target of $340 may be reached sooner than expected.
Disclosure: At the time of writing, the author of this feature owns BTC and ETH.
Information source: 0x information compiled by CRYPTOBRIEFING. The copyright belongs to the original author and reproduction is prohibited.