Solana (SOL) has been among the cryptocurrencies taking center stage throughout 2023 – and particularly during the rally that started in late October. Its overall performance can be described as impressive as it has added more than $50 to its price – and more than $22 billion to its market cap – since January 1.
Its impressive performance brought SOL into the limelight, with various analysts assessing that it is currently stronger than ever and even going as far as to predict that it might outshine Ethereum (ETH) next year.
While offering a strong performance, Solana’s trajectory hasn’t been entirely stable – as is often the case on the crypto market – and TD Sequential, a technical analysis (TA) tool created by a market analyst called Tom DeMark, signaled that it may be facing an imminent price correction.
Will SOL retrace below $48?
A prominent cryptocurrency analyst – Ali Martinez – took to X on December 5 to warn that TD Sequential, a tool designed to signal likely changes in price direction, warns that Solana might soon experience a significant price drop.
According to the tweet, a surge in profit-taking could drive SOL all the way back down to $47.6. Martinez, however, also pointed out that should SOL manage to rise above $68.4, it would escape the current bearish outlook and will start aiming for the price of $108.
SOL price analysis
While SOL’s rise has been impressive since mid-October, the last 24 hours show some signs of a decline. Between December 4 and the time of publication on December 5, Solana dropped by 2.06% to the price of $60.27. Despite this short-term trend, SOL is up 7.72% in the last 7 days and an even more impressive 44.38%.
While certainly noteworthy, SOL’s performance is largely In line with the broader bullish trend observable with numerous other cryptocurrencies, including giants like Bitcoin (BTC) and Ethereum. Solana’s market cap has also significantly grown this year from $3.6 billion on New Year’s Day to $26.1 billion on December 5.
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