An analyst has pointed out how Solana is forming a Tom Demark (TD) Sequential sell signal on three of its charts, which could lead to a cooldown for the asset.
Solana Has Just Witnessed A Sell Signal On Three Timeframes
In a new on X, analyst Ali Martinez has discussed the TD Sequential signals Solana is currently observing. The “TD Sequential” here refers to an indicator in technical analysis generally used for locating probable reversal positions in any asset’s price.
This indicator has two phases: setup and countdown. In the first of this setup, candles of the same polarity (that is, whether red or green) are counted up to nine. When the ninth candle is reached, the TD Sequential indicates that the price has reached a potential reversal point.
Naturally, the indicator would give a sell signal if the candles leading up to the setup’s completion had been green. Similarly, the red nine candles would suggest a bottom for the asset.
The second phase, the countdown, kicks off as soon as the setup finishes. This phase works in the same way, except for the fact that candles here are counted up to thirteen instead of nine. Once these thirteen candles are also in, the price could be assumed to have reached another turnaround position.
Now, here are the charts shared by Ali, that show the completion of a TD Sequential phase of the former type for Solana on three different timeframes:
Looks like the setup has been completed with green candles on all of these charts | Source:
As the graphs show, Solana has formed a TD Sequential setup with an uptrend on all three daily, four-hour, and hourly timeframes. This would mean that the coin has potentially hit the top.
The sell signal has come for the cryptocurrency after it has witnessed a rally of more than 18% over the past week. The pattern doesn’t have to necessarily imply an end of this bullish momentum for the long term, but it could suggest that a cooldown may be coming shortly.
In some other news, a massive transaction has been spotted on the SOL network during the past day, as cryptocurrency transaction tracker service has revealed.
The details of today’s SOL whale transactions | Source:
In this transfer, a Solana whale transferred 19,068 SOL (equivalent to over $35.1 million when the transaction was executed) from an unknown wallet, likely to be the investor’s self-custodial address, to the Binance exchange.
Holders generally transfer to these platforms when they want to use one of the services they offer, which can include selling. Thus, it’s possible that the whale made the move to cash in on the surge that the asset has recently witnessed.
SOL Price
Solana had surged to the $185 mark yesterday, but has since declined to the $180 level, a potential sign that the TD Sequential setup may be in effect.
The price of the coin appears to have been climbing over the last few days | Source:
Featured image from Shutterstock.com, whale-alert.io, chart from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
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Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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