The Tom DeMark (TD) Sequential indicator, which has more than 25 signals, gives reversal signals for 2 altcoins.
According to the indicator, these 2 altcoins are ready for a comeback
Solana and Avalanche have reached overbought territory. Therefore, they are preparing a potentially important correction signal. Both altcoin prices are poised for short corrections after being rejected from critical resistance areas. SOL is up nearly 29% from the low of $30.80 to $39.70 last week. The spike allowed the SOL to test the 200 hourly moving average on the six-hour chart. Although it tried to break this resistance level multiple times, it did not show enough strength to produce a close candle above it.
The lack of momentum in such a major hurdle has led to a 7.9% correction over the past few hours. The Tom DeMark (TD) Sequential indicator currently offers a sell signal pointing to a steeper pullback. If Solana loses the $36.80 level as support, a drop towards $35 or even $33.40 is possible. cryptocoin.comYou can take a look at the accurate predictions of the indicator, which we have quoted as
The indicator set these levels for AVAX
Avalanche is gaining momentum in the same direction as Solana. AVAX has enjoyed an uptrend of 34% since June 30. Then, it failed to surpass the 200 hourly moving average on its six-hour chart. The rejection in the region led to an increase in selling pressure after TD Sequential gave a sell signal.
A close below $20 on the last six-hour candlestick confirms the pessimistic outlook. Now, AVAX is moving towards the 50 hourly moving average at $18. From there, it prepares to gather liquidity for a potential rebound.
Given the strength of the recent correction, they need to break past the MA lines for them to invalidate the bearish view. Accordingly, they need to consistently close above their 200 hourly moving averages. If successful, SOL targets $43, AVAX’s first stop will be $24.
Solana, the 9th largest cryptocurrencies by market cap, is trading at $38.86 at the time of writing. It has gained 17.63% since last week. Meanwhile, AVAX price reached above $20. AVAX is the 15th largest cryptocurrency by market cap. It has risen 24.69% since last week, surpassing the $20 psychological resistance. AVAX was among the top 10 cryptocurrencies at one point last year.
Meanwhile, all the while Bitcoin is trading above $21,500. The leading cryptocurrency has gained over 10% since last week.
