Solana: Analyst predicts an imminent and strong correction

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  • Crypto analyst Ali Martínez stated that there is a technical indicator that endangers Solana’s bullish rally.
  • This is the TD Sequential indicator, which every time it is turned on, SOL collapses between 17% and 28%.
  • At this time, the altcoin accumulated a gain of almost 10% in the last 24 hours to sit above 166 USD.

The enthusiasm of Solana investors was very clear and this is demonstrated by the 65% increase it has experienced since the beginning of the year.

It should be noted that SOL managed to overcome the 170 USD barrier for the first time in more than two years, although it also cut part of its gains and is now trading at 166 USD.

Despite the general optimism of the market, analyst Ali Martínez made a publication in X suggesting that Solana could face a “sell signal.”

Martínez highlighted the TD Sequential indicator, a trading tool designed to identify the exact moment of trend exhaustion and price reversal.

According to the analyst, every time the indicator turned on since December 2023, SOL always experienced sharp drops of between 17% and 28%.

If this comes to fruition, Solana could collapse to $152 or even reach $127, Martínez admitted.

Solana’s fundamentals

Today SOL is the fifth largest cryptocurrency in the world in terms of market capitalization with a value exceeding $75 billion.

Recently the network has been experiencing a higher volume of transactions and the popularity of projects is also increasing.

In parallel, Stablecoin issuer Circle is increasing liquidity on Solana with the upcoming introduction of its Cross-Chain Transfer Protocol (CCTP). This strategic initiative allows Circle to create and maintain a USDC balance on the network.

On the other hand, many experts have highlighted that the Solana blockchain is more efficient, faster and cheaper than Ethereum. They have even said that it could surpass it in the future.