Solana Price Forecast: SOL could take a breather and pullback 30% after a 600% bull rally

Solana price shows signs of bullish exhaustion after a 600% bull rally in less than 35 days.
The Tom DeMark Sequential has presented a sell signal in the form of a green nine candlestick suggesting that a correction could follow.
A failure of the demand barrier at $14.82 could extend the pullback to the 61.8% Fibonacci retracement level.

Solana price has been on an uptrend since January 22 with only minor corrections. SOL was surprisingly unbothered during the market crash on February 22 and 23, as it dropped by a mere 13%.

Solana price at an inflection point

Solana price saw a 75% upswing since the market crash on February 22. Now, the Tom DeMark (TD) Sequential indicator has flashed a sell signal in the form of a green nine candlestick on the 6-hour chart. This technical formation forecasts a one to four candlestick correction.

At the time of writing, the second red candlestick was underway, indicating a follow-through. Interestingly, SOL saw an average correction of 15% the last five times this indicator flashed a sell signal.

Hence, it is safe to assume that this correction could extend anywhere between 15% to 30%. A 15% correction would put SOL at $14.8 or the 78.6% Fibonacci retracement level. However, if the selling pressure piles up, the correction could drag Solana price to $12.2 or the 61.8% Fibonacci retracement level.

SOL/USDT 6-hour chart

Regardless of the bearish indications, investors should note that a bounce from the immediate supply barrier at $14.8 is plausible.

However, a build-up of buyers around this level could result in a volatile upswing of Solana price towards an all-time high at $18.18 or $22.44, which coincides with the 127.2% Fibonacci retracement level.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.