Analyst Calls Buy Signal As Solana Hits Key Support At $141

According to data from CoinMarketCap, Solana (SOL) has been slightly positive in the last day, notching a market gain of 1.37%. This price increase, while little, is highly encouraging for investors considering Solana’s bearish form in the past week where it lost 8.11% of its market value. Interestingly, crypto analyst Ali Martinez postulates that SOL could sustain its current positive performance following the discovery of a buy signal.

Via his X handle on Saturday, Ali Martinez noted that Solana had recently fallen to a key support level at the $141 price mark. According to the analyst, this decline resulted in the generation of a buy signal by the TD Sequential indicator.

#Solana has hit a key support level at $141, with the TD Sequential showing a buy signal on the $SOL daily chart! If this support holds, #SOL could rebound for one to four daily candlesticks. pic.twitter.com/AjQX8CGf1d

— Ali (@ali_charts) June 15, 2024

For context, the Tom DeMark Sequential indicator is a technical analysis tool used to identify potential turning points in the price of an asset. The primary goal of the TD Sequential is to anticipate market reversals and trends by counting a series of price bars.

Following Solana’s bearish form in the past week, Martinez states that the token’s price drop to $141 has signaled a potential trend reversal according to signals from TD Sequential. Martinez postulated that if the buy signal proves true and the $141 price mark holds as a solid support level, SOL could maintain a price rally for the next 1-4 days. 

Interestingly, since hitting the specified support level, Solana climbed by over 3% to trade above the $145 price mark. 

If SOL maintains the same level of price growth over the next four days, the altcoin is expected to attain a price mark of at least $158. However, a critical resistance lies at the $149 price zone. Sufficient selling pressure at this price may force SOL to resume its bearish trend.

At press time, Solana trades at $145.16 after a 10.25% decline over the last month. However, the altcoin still remains one of the best-performing major cryptocurrencies in 2024 with a combined market gain of 43.5% all year.

Generally, Solana is tipped as one asset to look out for in the expected crypto bull run following its performance in the last bull cycle where it rose from around $3.5 to a peak price of $249.98. In addition, Solana boasts of a robust meme coin ecosystem valued at $7.46 billion which could also contribute to spurring the token’s price to new heights in the coming months.