Solana Flashing Sign of a Potential Correction, Says Crypto Trader Ali Martinez – Here Are His Targets

By The Daily Hodl March 16, 2024 In Solana
Source: Ali Martinez/X

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,

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“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.”

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Source: Ali Martinez/X

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 a 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.

Generated Image: Midjourney

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