Popular crypto analyst and trader Ali Martinez, referencing a signal from the Tom DeMark (TD) Sequential Indicator, warned of a possible correction for Ethereum‘s (ETH) strong competitor, Solana (SOL). In contrast, anonymous analyst Kaleo predicts the continuation of the rise in the altcoin.
Could Drop to 127 Dollars
Known for his posts on social media platform X, Ali Martinez stated that the TD Sequential Indicator signaled a sell on SOL’s daily chart, which historically tends to precede price drops for the altcoin. Martinez noted that since December 2023, every time the indicator signaled a sell, SOL’s price dropped by 17% to 28%, and the indicator currently points to a potential pullback to 152 dollars and even 127 dollars.
At the time of writing this article, SOL is trading at $186.09, up 12% in the last 24 hours. Despite SOL’s recent surge, it continues to trade 27.61% below its all-time high of $260.06 recorded in November 2021.
If the analyst’s prediction materializes, it corresponds to a worst-case scenario of a 30% drop for the altcoin at current prices. Despite his bearish outlook, Martinez advises investors not to short assets during a bull market, but rather to buy the dips.
200 Dollar Forecast
Not all analysts are on the bearish side like Martinez regarding Solana. Anonymous crypto analyst Kaleo recently stated that after SOL broke the rising trend line around the $150 range, it could climb to $200.
The differing views among analysts reflect the uncertainty surrounding SOL’s short-term price trajectory and highlight the importance of comprehensive technical analysis when trading in the highly volatile crypto market. Although Martinez warns of a temporary correction based on historical indicators, the general forecast for SOL is for a continued price increase, potentially surpassing the $200 threshold in the short term.
