Bitcoin Surpasses $42,000, But SOL Coin Lags Behind
Investors have witnessed Bitcoin surging past $42,000, but SOL Coin has yet to reach higher peaks. This discrepancy may be attributed to investors shying away from altcoins, anticipating a sustained BTC rally. Let’s delve into the current situation to gain insights into Solana (SOL).
Why Did Solana (SOL) Experience a Decline?
Market fluctuations are inevitable, and the SOL Coin rally is no exception. According to the TD Sequential indicator, SOL Coin has hit its local bottom, signaling the onset of a correction. This sell signal aligns with the RSI, which has consistently lingered in the overbought zone. Technical indicators suggest a potential correction lasting 1-4 weeks, with prices expected to reach lower depths due to increased profit-taking.
TD Sequential is a reliable tool for predicting trend exhaustion points and timing buying or selling decisions. Meanwhile, BTC’s dominance is on the rise, with the RSI on the Bitcoin price chart suggesting a possible correction. In both scenarios, caution is warranted when approaching altcoins, as historical trends indicate weakening altcoins during BTC rallies and potential deepening sell-offs even if BTC weakens, searching for bottoms below $42,000.
For now, SOL Coin investors are advised to monitor GSOL demand and await BTC consolidation above $42,000, allowing altcoins some breathing room.
SOL Coin Analysis
Fibonacci levels offer insights into crucial levels for SOL Coin during downturns or upturns. These levels are effective in predicting price reversals after significant movements. The 78.6% correction level, currently at $47.6, appears to be a reasonable target.
If bulls cannot maintain the support level at $47.6, and profit-taking intensifies due to the recent rapid rise, a drop to the next support level at $35.8 could occur.
However, all hope is not lost for SOL Coin. A weekly close above $68.4, as mentioned previously, could pave the way for a resurgence, potentially reaching $108.