An analyst pointed out how Shiba Inu (SHIB), Solana (SOL), and Cardano (ADA) are among the altcoins receiving a buy signal on this indicator.
Shiba Inu, Solana and Cardano form buy signal after market crash
In a new publish on X, analyst Ali Martinez talked about how a Tom Demark (TD) sequential signal recently formed for Shiba Inu, Solana, and Cardano. O “Sequential TD” here refers to an indicator in technical analysis (TA) that is generally used to find likely reversal points in the price of any asset.
This indicator typically involves two phases: setup and countdown. In the first of them, the to set up, successive candles of the same color are counted to nine. Once the chart has recorded these nine candles, it can be assumed that the price has reached a turnaround position.
Naturally, if the setup is completed with green candles, the asset can be considered to have reached the top. Likewise, if it ends with a downtrend, the price could be headed for an upward recovery.
Once setup is complete, the countdown phase begins. This second phase looks much like the first, except that it involves thirteen candles of the same type instead of nine. When the countdown ends, it can be assumed that the asset has reached another potential reversal point.
It appears that three altcoins, Shiba Inu, Solana and Cardano, have just completed a Sequential TD phase of the first kind on their daily charts. Here are the charts shared by the analyst that show the formation of this signal in the prices of these cryptocurrencies:
As visible on each chart, these altcoins have formed this TD Sequential pattern with red candles, which means the indicator is now giving a buy signal to them.
The sign appeared for Shiba Inu and company as a result of the downtrend that they have recently experienced. However, respite may finally come for these assets, if the indicator is to be believed.
In fact, since the buy signal appeared, the currencies have already started to recover. Among these, Solana especially stood out with its 9% jump in the last 24 hours.
It now remains to be seen how long this renewed upward trend will last for these coins, especially for Cardano and Shiba Inu, which have so far only registered increases of 5% and 4%, respectively.
SHIB Price
Last month was a terrible time for Shiba Inu investors, as the memecoin fell more than 30% in this period, which caused its price to fall to $0.0000173. The chart below shows how the coin has performed recently.