SOL/USDT Weekly (1W) Chart - In-depth Technical Analysis 500$ When ?
Historical Context (August 2021):
In August 2021, SOL formed a similar triangle pattern on the weekly chart. This pattern, known as an symmetrical triangle, is typically a bullish continuation pattern. Once SOL broke out from this formation, it experiencand ded a massive rally of about 917%, skyrocketing from $23 to $232. its historical move bcz is nearly 10x Return in just 90days.
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Current Setup (August 2024):
Fast forward to August 2024, and we're seeing a strikingly similar pattern. SOL is once again consolidating in a triangle, but this time around $148. The market is testing the patience of both bulls and bears, and the direction of the breakout will likely dictate the next major move becuose,
1. Triangle Formation
The current triangle pattern indicates that the market is in a consolidation phase after a significant move. Historically, similar patterns have led to explosive breakouts, especially when they occur after a rally.
2. Support and Resistance
- Support: The key support zone lies around $115-$120, which aligns with a historical support level and is further reinforced by the EMA 21. This level has held up well in the past, and a drop below it could signal further downside.
- Resistance: The immediate resistance zone is around $186-$190. This is where the price has struggled to break through recently, and it also coincides with previous highs that acted as resistance.
3. Exponential Moving Average (EMA 21)
The EMA 21 is a critical indicator that smooths out price action and provides a clearer trend direction. Currently, SOL is trading above the EMA 21, which is a bullish sign. If SOL remains above this level, it strengthens the case for a potential breakout to the upside. Conversely, if it drops below the EMA 21, it could indicate a trend reversal or further consolidation.
Bullish Scenario
If SOL breaks above the $186-$190 resistance zone, we could see a repeat of the 2021 rally.
