A momentum indicator recently flipped bullish for Solana (SOL), according to a popular crypto analyst.
Ali Martinez tells his 70,400 followers on the social media platform X that the top Ethereum (ETH) rival’s Tom DeMark (TD) Sequential Indicator presented a buy signal on the asset’s daily chart.
Traders use the TD Sequential Indicator to predict potential trend reversals for tokens based on the closing prices of their 13 previous bars or candles.
Martinez says SOL “could rebound from the channel’s lower boundary toward the middle or upper boundaries, positioned at $154 and $187 respectively.”
SOL is trading at $123.22 at time of writing. The 5th-ranked crypto asset by market cap is down nearly 6% in the past 24 hours and nearly 10% in the past seven days.
The analyst does caution, however, that a sustained close below the channel’s lower boundary at $126 could trigger a significant price correction for SOL, pushing the asset down to the $90-$110 range.
Martinez also notes that the digital asset market is currently registering “extreme fear,” citing the Crypto Fear & Greed Index, a tool that gauges market sentiment on a scale from 0-100.
A reading of extreme fear can indicate oversold conditions, while a reading of extreme greed suggests overbought conditions.
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Generated Image: Midjourney