Solana faces imminent price correction: Here’s why
Solana (SOL) has been experiencing a significant rally over the previous month and has, by November 2, reached its new yearly high of approximately $44. The trend follows the price movements seen across the broader crypto market and is perhaps best illustrated by Bitcoin’s (BTC) year-to-date increase of 112%.
Despite the onslaught of positive news, cryptocurrencies including Bitcoin have been hovering around their recently reached highs and experiencing multiple corrections near said points.
As for Solana, a crucial indicator called the TD Sequential hints that it may be in for an imminent price correction.
TD Sequential is a technical analysis (TA) tool created by Tom DeMark, a market analyst, designed to detect points where a price is likely to change directions by analyzing price reversals and continuing patterns.
TD Sequential signals it may be time to short Solana
Late on November 1, the prominent cryptocurrency trading analyst Ali Martinex took to X to warn that TD Sequential, a technical analysis tool, is hinting that Solana may experience a price correction very soon.
Martinez pointed out that should SOL breach its support level of $39.70, it might drop as low as $37.97. The sell signal indicated by TD Sequential hints that it may be a good time to short Solana to take advantage of the possible price correction.
Solana price chart analysis
While Solana has been slowly rising since the beginning of October, the final days of the month saw its price shoot up. At the time of publication, its price was $43.50, meaning it is up 11.74% over the previous 24 hours. Throughout the previous month, Solana also added over $6 billion to its market cap.
While Martinez warns that there may be a price correction to $37.97, others believe that SOL will experience a staggering rise throughout the rest of the decade.
VanEck, a global investment manager, recently published an estimate that Solana could rise as much as 10,600% by 2030 – meaning that the price of the token may be as high as $3,211 at the end of the current decade.