Solana Price Reversal? TD Sequential Indicator Flashes Bullish Signal
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Solana (SOL) experienced a price drop of over 13% recently, but a bullish signal has emerged from the Tom Demark (TD) Sequential indicator on the 12-hour timeframe. This technical analysis (TA) tool identifies potential price reversals. The indicator consists of two phases: a setup phase involving nine candles of the same color, and a countdown phase with thirteen candles. In Solana's case, nine consecutive red candles (indicating a downtrend) triggered a buy signal, suggesting a potential bullish reversal. This is noteworthy given the recent price decline. However, counteracting this bullish signal is on-chain data showing a large SOL whale transferring 2.86 million tokens ($441 million) to Binance. This significant transfer raises concerns, as whales often move assets to exchanges before selling, which could exert bearish pressure on the price. The analyst's chart clearly shows the completion of the TD Sequential setup phase with the nine red candles. The price currently sits at $153.90. While the TD Sequential suggests a potential bullish reversal, the large whale transfer to Binance casts doubt on this prediction, highlighting the conflict between technical and on-chain analysis. The situation presents a classic case of conflicting signals, leaving the future price movement uncertain and requiring further observation.
(Source: https://www.newsbtc.com/news/solana/solana-down-13-indicator-turned-bullish/)
