Solana Drops 13% But TD Sequential Signals Potential Reversal

Solana, a prominent cryptocurrency, has recently experienced a significant price decline, dropping by 13% over the past week. This downturn has led to a price of $153.90 for the asset. Despite this bearish trend, a technical analysis indicator has suggested a potential reversal in Solana's price trajectory.

Analyst Ali Martinez highlighted a signal on the 12-hour price chart of Solana, based on the Tom Demark (TD) Sequential indicator. This technical analysis tool is used to identify potential reversal points in an asset's value. The TD Sequential involves two phases: the setup and the countdown. During the setup phase, candles of the same color are counted up to nine, which do not necessarily have to be consecutive. Once this phase is complete, the indicator flashes a reversal signal for the asset. The countdown phase follows, where candles are counted until thirteen, indicating another potential reversal point.

The recent signal on Solana's 12-hour price chart showed nine red candles, indicating a buy signal for the cryptocurrency. This signal came after Solana's price had declined by more than 13% over the past week. The buy signal suggests a potential bullish reversal for Solana, although it remains to be seen whether this signal will be sufficient to drive a price recovery.

While the technical analysis indicator points to a potential bullish reversal, on-chain data provides a different perspective. According to cryptocurrency transaction tracker service Whale Alert, a significant amount of Solana tokens were transferred to the Binance platform. The investor moved approximately 2.86 million tokens, valued at $441 million, to the exchange. This large-scale transfer could indicate that the holder intends to sell their tokens, which could exert a bearish effect on Solana's price.

Ask Aime: Should I buy Solana now after its 13% drop?

In summary, Solana's recent price decline has been accompanied by a bullish signal from the TD Sequential indicator. However, the large-scale transfer of tokens to Binance suggests a potential bearish outcome. The interplay between these technical and on-chain indicators will determine Solana's price trajectory in the coming days. Investors and traders will be closely monitoring these developments to gauge the cryptocurrency's future performance.