Technical Analysis Suggests Solana Is Quietly Setting Up For Parabolic Breakout
Solanas (SOL) immediate prospects look positive as a technical analysis indicator, known to mark inflection points in the market, is flashing a bullish signal.
Solanas $187 Potential
Solanas chart is showing signs of a potential bullish reversal.
Independent market analyst Ali Martinez noted in a recent post on Twitter (aka X) that Solanas TD (Tom DeMark) Sequential indicator had sent a buy signal on SOLs daily chart.
The DeMark indicator helps technical analysts gauge the state and health of the current trend and potential turning points in the price trend of an asset. The DeMark daily sequential indicator forms a buy signal after three conditions are fulfilled. First, nine or more successive daily closes must be below the corresponding closure four days earlier. Second, the high of any day on or following the eighth day must be bigger than the low of any day three or more days prior.
Once the above conditions are met, traders count the number of days with a closing price lower than the close two days ago. When this count hits 13, a buy signal is printed.
Martinez believes SOL could rebound from the channels lower boundary toward the middle or upper boundaries, positioned at $154 and $187, respectively.
According to CoinGecko data, SOL was changing hands at $127.67 as of press time. The fifth-largest token by market capitalization is down by 1.5% on the daily chart. Solanas price remains 51.2% away from its old all-time high of $259.96, reached three years ago in November 2021.
However, Martinez warned that a sustained close below the channels lower boundary at $126 could spark a massive price correction for SOL, taking the crypto to the $90-$110 range.
Could A Solana ETF Spark A Mega SOL Rally?
As previously reported, Solana could be the next crypto major to secure a spot exchange-traded fund (ETF) listing in the US after Bitcoin (BTC) and Ethereum (ETH), which could be a strong price catalyst.
Brazilian regulators have already approved the worlds first Solana ETFs. These products are expected to go live in the coming months. The development could inspire the United States, the worlds largest economy to explore SOL-based ETFs in the future.
In the U.S., two would-be issuers, VanEck and 21Shares, have previously submitted applications with the Securities and Exchange Commission (SEC). However, Cboe removed the 19b-4 filings for the two prospective Solana ETFs from its websites Pending Rule Changes page after the SEC rejected the filings due to the agencys concerns over Solanas classification as a security.
While a US Solana ETF seems a bit farfetched at the moment, its unlikely prospect makes it a significant price catalyst in case of a potential greenlight from the SEC.
Text source: ZyCrypto
