Bitcoin has surpassed $42,000, but SOL Coin has not reached higher peaks yet. This could be due to investors avoiding altcoins, assuming that the BTC rally will continue. So what does the current situation tell us about Solana (SOL)?
Why Did Solana (SOL) Fall?
There are always ups and downs, and the SOL Coin rally will also come to an end. According to the TD Sequential indicator, SOL Coin has reached its local bottom and a correction is starting. This sell signal is supported by the RSI, which has been hovering in the overbought zone. According to the technical indicator, the possible correction could be completed within 1-4 weeks, and the price is expected to reach deep bottoms due to increased profit-taking.
TD Sequential is preferred to predict trend exhaustion points and measure the timing of buying or selling. On the other hand, while BTC’s dominance is increasing, the RSI on the Bitcoin price chart has been lingering in the overbought zone for a while. This also suggests the possibility of a BTC correction.
In both scenarios, the current position of BTC warns us to approach altcoins cautiously. In the past, when BTC was rising, altcoins continued to weaken. In the opposite scenario, even if BTC weakens, altcoin sell-offs could deepen while searching for bottoms below $42,000.
For now, it would be reasonable for SOL Coin investors to monitor the demand for GSOL and wait for BTC to consolidate above $42,000, giving altcoins some time.
SOL Coin Analysis
Fibonacci levels can indicate important levels for SOL Coin in possible downturns or upturns. Fibonacci levels are quite successful in predicting price reversal points after major movements. The 78.6% correction level, which is currently at $47.6, seems like a reasonable target.
If the support level at $47.6 cannot be maintained by the bulls and profit-taking increases due to the recent rapid rise, there could be a drop to the next support level. In this case, the support level is at $35.8.
So, is there no possibility of a comeback for SOL Coin, is it over? No, if the bulls can see a weekly close above $68.4 (as we mentioned yesterday), it could reach $108.
