With the cryptocurrency market being unpredictable and volatile, Solana (SOL) is on the verge of a comeback, according to the insights of analyst Ali Martinez. According to Martinez’s analysis in a recent X post, which has attracted attention, there is a marked event on the Tom DeMark (TD) Sequential indicator, which implies that the Solanaprice rally is imminent.
The TD Sequential, the leading trend end and reversal indicator, bought a signal on the daily chart SOL/USDT. Martinez highlighted this indicator’s importance, saying that it may start a procession of four bullish candles on the chart, and increase the chance of SOL climbing.
Solana’s Bullish Reversal
Nevertheless, Martinez depicts the point where the sellers hadn’t sustained their speed any further and stalled near the $99 level. This exhaustion triggered a bullish reversal through which the rate of Solana approached the $103 level.
In the midst of a 5.88% decline in the value of SOL over the past week (according to the data from CoinMarketCap), the analyses on a timeframe of 4 hours suggest a persistent attempt of the altcoin to surpass the $105 level. Nevertheless, a strong resistance degree at $104.67 impeded the price advancement, leading to the price pullback.
Critical Support Levels Hold Key To Solana’s Potential Surge
Fundamental analysts are watching some key levels of support, especially the $102.08. If bulls maintain this support level, SOL may tally a rise beyond the current price of $105, which may result from increased buying activity. Correspondingly, a lack of such support could cause a decline to $99.81.
With RSI falling below 50.00, the key indicator signaled that the market sentiment was mostly bearish. However, bullish forces could overpower the market with enough pressure to drive the SOL above the resistance level at $108.07.
Source: TradingView
A remarkable revelation is in the Moving Average Convergence Divergence (MACD), which is in the positive territory and is normally considered a sign of a bullish trend momentum. On the other hand, 12 EMA (blue) and 26 EMA (orange) circumnavigate the negative area, thus indicating that the bullishness is not yet confirmed.
However, when the 12 EMA of the SMA crosses above the 26 EMA, this is often interpreted as a shift toward buyers’ dominance. The crossover, together with other positive signs, may hence reserve a $116.27 high for SOL.
Source: TradingView
Finally, the MF analysis reveals a gradual flow of capital into SOL, though the amounts are still small. A surge towards the 62.82 threshold on the MFI would set the stage for the SOL’s price close to $120. Conversely, halting this level might jam up the altcoin’s price action within the $102 and $108 range.
Until that time, analysts see a possible northward bounce for SOL, implying the current market direction is still a subject of immersion for the cryptocurrency’s future price movement.