Solana and Avalanche Look Ready to Retrace

Solana and Avalanche Look Ready to Retrace


Key Takeaways

Solana and Avalanche are currently presenting sell signals on their six-hour charts.
The developments coincide with rejections from their 200-hour moving averages.
If both assets continue to trend down, SOL could dive to $35, while AVAX could hit $18.

Share this article

Solana and Avalanche appear to have reached overbought territory, potentially leading to a significant correction. 

Solana and Avalanche Face Corrections

Solana and Avalanche look primed for brief corrections after getting rejected from crucial areas of resistance. 

SOL has surged by nearly 29% over the past week, rising from a low of $30.80 to a high of $39.70. The sudden upswing took SOL to test the 200-hour moving average on its six-hour chart. Although it attempted to slice through this resistance level multiple times, it did not show enough strength to produce a candlestick close above it. 

bybit

The lack of momentum at such an important hurdle seems to have led to a spike in profit-taking that has resulted in a 7.9% correction over the past few hours. The Tom DeMark (TD) Sequential indicator is currently presenting a sell signal, hinting at a steeper retracement. If Solana loses the $36.80 level as support, a downswing toward the 50-hour moving average at $35 or even $33.40 is possible.

Source: TradingView

Avalanche looks like it could be headed the same way as Solana. After enjoying an 34% uptrend since Jun. 30, AVAX failed to slice through the 200-hour moving average on its six-hour chart. The rejection has led to a spike in selling pressure that could lead to further losses after the TD Sequential presented a sell signal. 

The recent six-hour candlestick close below $20 may have confirmed the pessimistic outlook. Now, AVAX appears to be heading toward the 50-hour moving average at $18. From there, it could collect liquidity for a potential rebound.

Avalanche price chart
Source: TradingView

Given the strength of the recent correction, Solana and Avalanche need to print sustained closes above their 200-hours moving average to be able to invalidate the bearish outlooks. If they succeed, SOL could rise to $43, while AXAX could make a break for $24.

Disclosure: At the time of writing, the author of this feature owned BTC and ETH.

For more key market trends, subscribe to our YouTube channel and get weekly updates from our lead bitcoin analyst Nathan Batchelor.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.



Source link

Leave a Reply

Your email address will not be published. Required fields are marked *

Pin It on Pinterest