Despite a turbulent week rife with widespread market volatility and investor apprehension over macroeconomic uncertainties, Solana (SOL) has emerged as a beacon of optimism among investors, showcasing remarkable resilience.
Notably, since reaching a peak of $209 in mid-March, SOL has been establishing lower highs while maintaining crucial support levels, forming a symmetrical triangle pattern that hints at potential future movements. This pattern became evident on Friday when SOL’s price rebounded strongly from a multiyear support level around $122, culminating in a bullish recovery heading into the weekend.
Amidst this backdrop, market analysts have been studying the token’s price action, with some comparing current market dynamics to historical price patterns observed in Solana’s trading history.
In a tweet on Friday, Trader Tandigrade pointed out striking similarities to trends seen in 2021, highlighting the recurring formation of a symmetrical triangle and the Relative Strength Index (RSI) returning to neutral levels after being overbought.
“Solana is repeating 2021 moves Same Symmetrical Triangle has been formed. RSI returns to 50 from overbought zone. Middle of the Bull Run SOL,” the pundit wrote suggesitng a forthcoming surge for SOL to $800.
Further bolstering optimism, analyst Captain Faibik shared insights from SOL’s weekly chart, identifying the triangle within a larger bullish flag pattern. According to Faibik’s analysis, the completion of the bull flag’s second pole would propel SOL toward $1000.
Recently, renowned investor Raoul Pal, known for his insights into global macro trends and cryptocurrency markets, advocated for buying SOL amidst its current tringle consolidation phase. In a separate YouTube video last week, the pundit disclosed that a significant portion of his crypto portfolio is now in Solana.
Elsewhere, Matthew Dixon, CEO of crypto investments firm EVAI, highlighted technical indicators that point towards a potential continuation of SOL’s corrective phase. In a tweet, the pundit further highlighted the presence of a regular bearish divergence, a key technical signal indicating an incomplete fifth wave down in the Elliott Wave cycle, emphasizing the importance of caution and confirmation.
That said, as Solana prepares for its next price movements, the cryptocurrency’s ability to maintain above the $122 support levels in the coming days could set it up for future growth.
At press time, SOL was trading at $134.17 after recovering fully from Friday morning’s 6% flash clash. According to CoinMarketCap data, the coin’s buying volume has increased by roughly 45.96% to $4.9 billion over the past 24 hours.