The overall crypto market turning bullish as top assets like Bitcoin and other altcoins experienced massive price surges in the last 24 hours. Amid this bullish outlook, traders have spotted a bullish triangle price action pattern on Solana’s (SOL/USDT) daily chart.
Solana forms a bullish price action pattern
According to analysts at Fairlead Strategies, crypto traders looking for clues on Solana’s (SOL) next move should closely track the digital asset’s months-long triangular price consolidation. This pattern could be a catalyst for a renewed price rally for SOL, the world’s fifth-largest cryptocurrency by market value.
In the first quarter, SOL’s price nearly doubled to over $200, urged by the excitement around the debut of a spot Bitcoin ETF in the United States. However, since then, the uptrend has lost steam, with the price consistently finding support around $120 but experiencing progressively shallower recoveries.
This price action has resulted in a descending triangle pattern, characterized by a downward-sloping trendline representing lower highs and a flat trendline indicating solid support. This pattern suggests seller dominance in the market. However, a breakout from this pattern could signify renewed upside momentum for SOL.
“A breakout would mark a bullish continuation of the long-term uptrend, putting secondary resistance near $202. Triangle support is near $132,” analysts at Fairlead Strategies stated in a note to clients on Monday. “We hold a neutral bias until a breakout unfolds,” they added.
Technical analysis for Solana and Key level
For now, traders are advised to keep a close watch on SOL/USDT price movements, if SOL gives a breakout of a triangle pattern along with a horizontal level of $160 level a massive price surge can be seen in SOL/USDT price till the next resistance near $185 level. A successful breakout could reignite investor confidence and drive SOL prices higher, while failure to break out could lead to continued consolidation or potential declines.
Additionally, if SOL reaches the $176 level nearly $3 billion of short position will be liquidated, according to data from an-on-chain analytic firm CoinGlass.
