Since the start of 2024, the Solana (SOL) price has not quite been able to replicate the strength with which it moved last December. While Bitcoin and most altcoins have turned in a positive performance in the past few weeks, the movement of the SOL token has been largely underwhelming and, at best, sideways.
However, a popular crypto analyst on X has come forward with a favorable prognosis for the price of Solana, ringing a buy alarm for the cryptocurrency.
Solana Price To Witness Bullish Momentum?
Prominent crypto analyst and trader Ali Martinez took to the X platform to share a bullish projection for the price of Solana over the next few days. This analysis revolves around the “Tom Demark” (TD) Sequential indicator, which helps to identify potential points of trend exhaustion and price reversal.
The TD Sequential indicator ultimately follows two phases, namely the “setup” and the “countdown” phases. As shown in the chart below, Solana’s price just completed the setup phase, which usually entails nine candles of the same type.
Chart showing SOL price forming the "setup" phase on the daily timeframe | Source: Ali_charts/X
Typically, completion of this phase signals a potential trend reversal for the asset. The type of candles that formed the “setup” determines the direction of the reversal (I.e., red candles would suggest a bottom for the asset, while green candles would imply a top).
Using the “setup,” Martinez revealed in his post that the TD sequential indicator is flashing a buy alarm on the Solana daily price chart. According to the analyst, this signal suggests a possible upward swing – consisting of one to four candlesticks – for the price of SOL.
Can SOL Price Return Above $110?
Solana’s current price action appears to be obeying Martinez’s bullish projection. As of this writing, the price of SOL stands at around $104, reflecting an over 3% climb in the past day.
Even though the token’s price seems to be recovering well, the recent gain has not been sufficient to erase its loss over the past week. According to data from CoinGecko, the SOL token has registered an almost 4% decline in the past week.
With the recent bullish prognosis, investors will be hoping that the cryptocurrency can reclaim the $110 mark at the very least. Although it has successfully breached this level multiple times, the Solana token has largely struggled to hold above $110.
Nevertheless, SOL continues to maintain its place amongst the top five largest assets in the cryptocurrency sector, with a market capitalization of over $45.65 billion.
Solana price showing signs of recovery on the daily timeframe | Source: SOLUSDT chart on TradingView
Featured image from Adobe Stock, chart from TradingView
