A popular crypto trader says he believes Ethereum (ETH) rival Solana (SOL) is flashing signs of a possible correction.
In a new thread, Ali Martinez tells his 52,700 followers on the social media platform X that SOL’s Tom DeMark (TD) sequential indicator flashed a sell signal on its daily chart, which historically signals a price drop for the smart contract platform.
The TD Sequential indicator is typically used to identify the potential turning point for an asset’s price.
Explains the analyst,
“Since December 2023, every time this indicator suggested selling, the price of SOL dropped by 17% to 28%. A similar outlook could see SOL retrace to $152 or even $127.”
SOL is trading at $184.13 at time of writing. The 5th-ranked crypto asset by market cap is up 12% in the past 24 hours and nearly 27% in the past week.
Martinez cautions traders not to short assets during bull market and instead says to just “buy the dips.” He predicts SOL will only endure a brief correction before heading to higher highs.
Not all traders think the Ethereum competitor is primed to dip, however. Pseudonymous analyst Kaleo told his 629,500 X followers earlier this week that SOL could soar to $200 after breaking out of a bullish trendline in the $150 range.
Despite SOL’s gains in the past month, it remains more than 29% down from its all-time high of which it set in November 2021.
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