- Seasoned analyst utilizes the Tom Demark Sequential on SHIB, ADA & SOL.
- Showing traits of a price trend exhaustion, Solana bounces back the fastest.
- Trading sideways, SHIB bows down to Tron (TRX) in the global crypto ranks.
Veteran crypto chart analyst Ali Martinez has offered a professional take on the recent crypto market downturn. The analyst measured Shiba Inu (SHIB), Cardano (ADA), and Solana (SOL) in relation to their latest price movements using the Tom Demark Sequential.
Types of TD Sequential Coming into Play
Used to time the market’s price trend reversal, this powerful financial trading tool can estimate trend exhaustion using an unconventional combination of historical price data on multiple time frames. The Tom Demark Sequential is divided into the setup phase and countdown phase, which are based on the 9-candle or 13-candle structure.
In his technical analysis, trader Martinez showcased the nine-candle Tom Demark Sequential, also known as the setup phase. Identifying a plausible turning point for each of the three altcoins, Ali explained that the Tom Demark Sequential flashed a ‘buy signal’ on SOL at the price range of $135.50.
How SHIB, ADA & SOL Are Faring So Far
Since Martinez’s post on X, SOL successfully scorched past the make-or-break line highlighted in the graphic above. The #5 ranked altcoin tacked on a 9% rebound rally from the week’s lowest point at $124.22 and is currently trading at $138, according to CoinGecko.
Along with a daily trading volume of $2.29 billion, SOL is also banking on fading Bitcoin’s (BTC) dominance this week due to sell-offs by Mt. Gox and Bitcoin exchange-traded funds (ETFs). This is further confirmed by Solana’s total value locked (TVL) reclaiming $4.24B, as investors turn to popular altcoins amid Bitcoin’s uncertain conditions.
Meanwhile, Cardano (ADA) fell to its lowest market value since November 2023 at $0.369 on June 24, 2024. Since then, Cardano recouped some pre-claimed support levels but got rejected at $0.40. The 5% bounce for ADA won’t be enough to sustain a bull takeover if the veteran altcoin fails to close above $0.44.
Finally, Martinez has marked Shiba Inu (SHIB) at $0.00001729 to likely break the bearish trend. SHIB shortly surged above $0.000018 in a rebound effort on Wednesday, but it couldn’t hold the resistance level and was pushed back to $0.00001749. As a result, the sideways movement for SHIB showcases an indecision between crypto bears and bulls.
On the Flipside
- The Tom Demark Sequential (TD) does not provide a guarantee, but rather a probability that a crypto price trend reversal will take place.
- According to the guidelines of the TD Sequential, the 13-candle ‘countdown’ phase implies a higher probability than the 9-candle count.
Why This Matters
Understanding how financial instruments work assists in figuring out the dynamics of the ever-shifting crypto market.
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