Solana Set For “A Major 53% Price Move,” Analyst Reveals Why
June 13 2024 - 12:00PM
NEWSBTC
An analyst has explained how Solana could be setting up for a major
53% move based on a Symmetrical Triangle pattern forming in its
price chart. Solana Has Been Travelling Inside A Symmetrical
Triangle Recently In a new post on X, analyst Ali Martinez
discussed a pattern that has recently taken shape in Solana’s daily
price chart. The technical analysis (TA) pattern in question is a
“Symmetrical Triangle,” which, as its name implies, looks like a
triangle. The triangular shape comprises two converging trendlines,
with the upper line joining successive lower highs and the lower
one connecting higher lows. A key feature of this pattern is that
these lines approach each other at roughly the same slope (hence
the “symmetrical” in the title). Related Reading: Why Is Bitcoin
Stagnant Despite ETF Inflows? Report Answers Like other TA
patterns, when the asset price consolidates in the region bounded
by these trendlines, resistance will probably be at the upper level
and support at the lower one. A break out of either of these lines
can suggest a continuation of the trend in that direction.
Naturally, a break above the triangle could be a bullish signal,
while a decline under the pattern could lead to a bearish outcome.
Similar to the Symmetrical Triangle, there are other triangle
patterns in TA. A couple of popular ones include the Ascending and
Descending Triangles. These patterns differ from the Symmetrical
Triangle in that one of their trendlines is parallel to the time
axis. Now, here is the chart shared by the analyst that shows the
Symmetrical Triangle that the 1-day price of Solana has been
trading inside over the last few months: As the above graph shows,
Solana has been closing in at the tip of this Symmetrical Triangle
pattern recently. As consolidation becomes tighter, a break out of
the pattern naturally becomes more probable. As mentioned earlier,
which of the two lines the breakout happens from sets the direction
the potential price move would go. “Keep an eye on the $143 support
and $178 resistance levels to gauge the direction of the SOL
trend,” notes Ali. Related Reading: Is Bitcoin Overheated Right
Now? This Metric Suggests No From the chart, it’s apparent that
Solana is currently floating near the bottom line, so a retest
could be coming up soon. If bullish momentum has to return for the
coin, this retest must be successful. Moves resulting from a
breakout of a Symmetrical Triangle may be the same length as the
triangle’s height. In the case of this Solana Symmetrical Triangle,
the height represents a price swing of 53%, so Ali believes that a
breakout would also set the coin up for a move of a similar scale.
SOL Price Solana hasn’t had the best times during the last few
weeks, as its price is now down to $149. It remains to be seen
whether a potential upcoming retest of the Symmetrical Triangle
support would change the coin’s fate. Featured image from
Shutterstock.com, charts from TradingView.com
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