Key Takeaways
Solana has retraced by 9.4% after reaching a record high of nearly $260 on Nov. 6.
Further losses are possible as sell signals have surfaced.
A downswing to $216 could be seen as a bullish catalyst for SOL’s next leg up.
Share this article
Solana has lived up to its hype, posting more than 65% gains over the past month. Still, the high-throughput blockchain’s SOL token could soon take a breather before resuming its uptrend.
Solana’s Uptrend Might Slow Down
Solana might present a buying opportunity for sidelined investors before it re-enters price discovery mode.
The sixth-largest cryptocurrency by market cap appears to have entered a brief corrective period. The Tom DeMark (TD) Sequential indicator presented a sell signal on the three-day chart shortly after SOL reached a new all-time high at nearly $260 on Nov. 6.
The bearish formation developed in the form of a green nine candlestick, which is indicative of a one to four three-day candlesticks correction.
A spike in profit-taking around the current price levels seems reasonable, especially now that the hype around Solana’s Breakpoint conference is fading away. If sell orders were to pile up, SOL would likely pullback towards the $216 support level.
Source: TradingView
A retracement to $216 could encourage sidelined investors to get back into the market. Such correction can be interpreted as a retest of an ascending triangle’s x-axis where Solana had been contained between Aug. 30 and Nov. 2. Rising buying pressure around such a crucial support point might propel SOL towards $340 to achieve the bullish target presented by this technical pattern.
It is worth noting that a few lower cap assets appear to be breaking out. Chainlink, Litecoin, and XRP have surged by more than 7% in the past 24 hours. Although Solana’s price action is not correlated to these assets, the upward pressure could still spill over.
Under such unique circumstances, it is imperative to pay attention to the recent all-time high at $260. An upswing beyond this price point could invalidate the short-term bullish outlook and lead to further gains. If this is the case, then the $340 target could be reached sooner than anticipated.
Disclosure: At the time of writing, the author of this feature owned BTC and ETH.
This news was brought to you by Phemex, our preferred Derivatives Partner.
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Sam Bankman-Fried: Social Media “A Massive Opportunity” for Solana
FTX CEO and known Solana advocate Sam Bankman-Fried spoke with optimism about the blockchain’s capabilities for GameFi and social media at Breakpoint today. Sam Bankman-Fried Discusses Solana’s Future FTX CEO…
How Bumper’s Price Protection Helps DeFi Users Earn Yield on Their A…
Is it possible to build a DeFi protocol that counters crypto’s inherent volatility while also letting holders enjoy the upshot of their assets? Bumper Finance is a DeFi price-protection protocol that aims…
Solana Looks Ready to Overtake Cardano’s Market Cap
Solana appears to be gearing up for a bullish impulse while Cardano sits on weak support. Data shows that SOL might only need $1 billion in total market value to…
Brave Browser to Integrate Solana dApps
Brave will provide default support for the Solana blockchain. Brave Offers Default Support For Solana Brave, a popular privacy-focused browser, has partnered with Solana to offer support for its decentralized…
