There’s a glimmer of hope for investors in popular altcoins like Solana (SOL), Cardano (ADA), and Shiba Inu (SHIB). After a recent market downturn that saw these digital assets plunge to multi-week lows, technical indicators are flashing buy signals, suggesting a potential price rebound.
Renowned on-chain analyst Ali Martinez identified these buy signals using the TD Sequential indicator on the daily charts for each coin. This technical analysis tool suggests that SOL, ADA, and SHIB are poised for a significant upswing.
The bullish signals come after a brutal market correction. Solana, for example, retested its $123 support level, a price last seen in early May. Similarly, Shiba Inu bottomed out at $0.00001642, a steep decline from its June high. Cardano, however, has borne the brunt of the selloff. It dipped to $0.3667 yesterday, effectively erasing all gains made in 2024.
But there’s reason for optimism for holders of these altcoins. The TD Sequential buy signals, coupled with a nascent bullish trend in the market, could lead to a short-term relief rally. At the time of writing, Solana has surged 13% to reach an intraday high of $138.97. Cardano has also seen a 7.4% increase, approaching the $0.4 mark, while Shiba Inu has experienced a slight uptick in its floor price. Notably, Bitcoin, the leading cryptocurrency, has remained relatively stable at around $61,000.
The bullish sentiment goes beyond technical indicators. Fear, as measured by market sentiment indicators, has reached its lowest point in 2024. This is often seen as a contrarian signal, suggesting a potential reversal. Additionally, reports of whale accumulation during the market dip further bolster the bullish case for altcoins.
However, some analysts warn of a potential short-term retracement for Bitcoin, which could impact altcoins. Despite this possibility, the overall outlook for the altcoin market appears cautiously optimistic, with both technical and sentiment indicators pointing towards a potential price recovery.
