Although Bitcoin has reached $42,000, SOL Coin has yet to reach higher peaks. This may be due to investors approaching altcoins with skepticism and believing that the Bitcoin rally will continue.
The TD Sequential indicator indicates that SOL Coin has reached a local bottom level and the correction has begun. The RSI indicator is also in overbought territory, supporting a sell signal. According to technical indicators, the possible correction could be completed within 1-4 weeks and prices could reach deeper bottom levels as profit-taking increases.
As Bitcoin dominance increases, the RSI on the Bitcoin price chart has also been in overbought territory for some time. This indicates the possibility of a BTC correction.
In both scenarios, the current situation warns us to be cautious about altcoins. In the past, altcoins have continued to weaken while Bitcoin rises. In the opposite scenario, even if Bitcoin weakens, altcoins could deepen their sell-offs while searching for bottoms below $42,000.
Fibonacci levels can indicate important levels for SOL Coin in possible declines or increases. The current 78.6% correction level of $47.6 seems like a reasonable target. If the $47.6 support level cannot be maintained by buyers and profit-taking increases due to the recent rapid rise, the next support level of $35.8 could be reached.
