Even though many assets in the cryptocurrency sector have been recording advances in the past few weeks, Solana (SOL) has dipped more than 6% in a single day, diving below the psychologically important level of $60 it briefly managed to surpass and threatening to decline further.
Indeed, as crypto trading expert Ali Martinez pointed out, Solana’s TD Sequential indicator has demonstrated a sell signal on the crypto asset’s weekly chart, adding that “the upcoming days could be crucial for traders eyeing profit-booking opportunities,” according to the chart pattern analysis he posted on November 20.
Specifically, as Martinez highlighted, the confirmation of the bearish formation might see Solana continue to downswing further toward the $45 price mark, potentially “even dipping to $30,” which would indicate a decline of a whopping 46.13% from its price at press time.
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Indeed, created by market analyst Tom DeMark, TD Sequential is a technical analysis (TA) indicator that helps assess the potential trend reversals and continuation patterns in financial markets, including in the crypto market, as it aims to identify points at which an asset’s price may change direction.
Solana price analysis
As things stand, the currently seventh-largest digital asset by market capitalization is changing hands at the price of $55.69, a decline of 6.58% in the last 24 hours but still a 0.71% gain across the previous seven days and an advance of 92.58% in the last month, as per data on November 21.
Meanwhile, the sudden dip in the price of Solana followed the bad news in which the United States Securities and Exchange Commission (SEC) marked this asset, along with Cardano (ADA), Polygon (MATIC), and others, as securities in the recently filed lawsuit against one of the largest crypto exchanges in the world, Kraken.
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