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A key technical indicator has flashed a short-term warning on the Solana price. According to analyst Ali Martinez, the TD Sequential indicator has presented a sell signal on Solana's four-hour chart.
Solana rebounded from lows of $136 on Aug. 16 after three consecutive days of falls. Solana extended its rebound, rising for two days in a row before retreating in today's session. Thus, the timing of the appearance of the sell signal on its chart remains significant as it might coincide with short-term profit taking.
However, it is important to note that market conditions can be unpredictable, and various factors could influence SOL's price direction.
That said, the appearance of a sell signal on the TD Sequential does not guarantee an immediate price drop, but it might indicate a profit-taking risk.
Tomiwabold OlajideThis warning comes at a time when the cryptocurrency market is facing uncertainty ahead of a crucial Fed release.
The July Federal Reserve meeting minutes are set to be released on Wednesday this week. Traders will also be watching for the annual economic policy conference in Jackson Hole this week, which could provide more clarity on the interest rate outlook, with Fed Chair Jerome Powell slated to speak.
Markets have fully priced in a Fed rate decrease in September; however, the odds of a 50 basis point reduction are lower.
What's next for SOL's price?
At the time of writing, SOL was down 1.75% in the last 24 hours to $142. If the current declines further, Solana might go under $130, which is a critical support to keep an eye on.
Instead, a price drop below $130 might indicate that selling pressure is intensifying. Solana may retest the key support level of $116. The bulls are anticipated to defend this level with all of their might, as a breach below it could spark a fresh decline.
If the price of Solana maintains its present level, bulls will attempt to push Solana over the moving averages. The positive trend is expected to pick up above $163 and even reach $193 next.
Arman Shirinyan