The analyst explained how Solana could be planning a big 53% move based on the Symmetrical Triangle pattern that is forming on its price chart.
Solana Has Been Moving Inside The Symmetrical Triangle Lately
In a new post on X, analyst Ali Martinez discussed the recently formed pattern on Solana’s daily price chart. The technical analysis (TA) pattern in question is the “Symmetrical Triangle,” as its name suggests, it looks like a triangle.
The triangle shape consists of two dynamic trend lines, the upper line connecting the successive low highs and the lower connecting the high lows. The main feature of this pattern is that these lines approach each other on almost the same slope (hence the “symmetrical” in the title).
Related Reading
As with other TA patterns, when the price of the asset converges in the region bounded by these trend lines, the resistance will likely be at the highs and based on the lows.
A break on one of these lines would suggest a continuation of the trend in that area. Naturally, a break above the triangle can be a bullish signal, while a drop below the pattern can lead to a bearish result.
Similar to the Symmetrical Triangle, there are other triangle patterns in TA. A few popular ones include the Ascending and Descending Triangles. These patterns differ from the Symmetrical triangle in that one of their trend lines is parallel to the time axis.
Now, here is a chart shared by an analyst showing the Symmetrical Triangle the 1-day price Solana has been trading in over the past few months:
As the graph above shows, Solana has been closing at the bottom of this Symmetrical Triangle pattern recently. As the consolidation becomes stronger, the pattern exit naturally becomes more likely.
As mentioned before, which two lines occur from the set where the price movement may go. “Look at the $143 support and $178 resistance levels to test the direction of the SOL trend,” Ali noted.
Related Reading
From the chart, it’s clear that Solana is floating close to where he last was, so a retest could happen soon. If bullish momentum should return to the coin, this retest should be successful.
The movement caused by the breakout of the Symmetrical triangle may be the same length as the triangle length. In the case of this Solana Symmetrical Triangle, the high represents a 53% price change, so Ali believes that the exit will set the coin back to move at the same rate.
The price of SOL
Solana hasn’t had the best of times over the past few weeks, as its price has now dropped to $149. It remains to be seen whether a possible future test of Symmetrical Triangle support will change the fate of the coin.
Featured image from Shutterstock.com, charts from TradingView.com
Source link
