According to TechFlow, on December 24, CoinDesk reported that cryptocurrency analyst Omkar Godbole pointed out that SOL currently presents a "bullish retracement" technical pattern.
SOL rose more than 7% this week to $193, finding support at the previous resistance level connecting the March and July highs. SOL previously broke through the March-October descending channel in early November, then quickly rose to $260, and fell back to the breakout point last week.
According to Charles D. Kirkpatrick II, author of Technical Analysis, this pullback pattern provides a second entry opportunity for traders who missed the initial breakthrough. The stop loss can be set below the breakthrough point, and the risk is relatively controllable.
It is worth noting that Bitcoin also showed a similar pattern in the second half of 2023, and then started a sharp rise. However, if SOL fails to hold the current support level and falls back into the channel, the bullish pattern will be invalidated.
