Solana (SOL) has presented a buying opportunity for those looking to trade against the market trend. However, its technical setup suggests that any coin acquired at current prices might suffer a brief devaluation due to bearish market control.
The Tom DeMark Sequential indicator shows a buy signal on the daily chart, indicating a potential rebound if accumulation gains momentum. This indicator tracks price action over nine candlesticks to identify trend exhaustion and possible price reversals.
However, other indicators hint at further declines. One such indicator is the Relative Strength Index (RSI), which measures overbought and oversold conditions. Currently, the RSI for SOL stands at 39.07, indicating weak buying pressure.
Additionally, SOL's price remains below the Leading Span A and B of the Ichimoku Cloud, forming critical resistance levels. The Ichimoku Cloud suggests bearish market conditions and potential for a continued downtrend.
Crypto trader Mosy Alpha has shared an optimistic projection for SOL ahead of the Breakpoint conference on September 20-21. Historically, SOL tends to perform well during this event, with a potential price target of $171.91 if traders heed the buy signal and increase liquidity.
However, the bullish outlook depends on market liquidity and whether the conference can surpass expectations. Failure to supply enough liquidity could invalidate the optimistic projection and trigger a correction, possibly down to $90 if key support levels are breached.
