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Crypto traders seek clues in Solana’s triangle pattern | Coin News | Finance & Business News
- The daily chart of SOL shows a triangular consolidation pattern.
- A breakout would signal a continuation of the broader uptrend, according to Fairlead Strategies.
Cryptocurrency traders looking for clues about the next possible move on Solana’s programmable SOL token blockchain should closely monitor the digital asset’s months-long triangular price consolidation.
That’s the message from analysts at Fairlead Strategies, who see a potential breakout of the triangle as a catalyst for a new price rally.
SOL, the world’s fifth-largest market cap, nearly doubled to over $200 in the first quarter as the debut of a spot bitcoin ETF in the U.S. galvanized bids for the broader market. The uptrend has since lost steam, with pullbacks supported around $120 and price recoveries becoming increasingly shallow.
This resulted in a so-called descending triangle pattern, comprising a downward sloping trendline representing lower highs and a flat trendline representing a solid support level. The pattern indicates seller dominance, so a breakout represents renewed bullish momentum.
“A breakout would mark a bullish continuation of the long-term uptrend, placing secondary resistance near $202. Triangle support is near $132,” analysts at Fairlead Strategies said in a note to clients on Monday.
“We maintain a neutral bias until a breakout occurs,” analysts added.
Solana was trading at $155 at press time, according to data from CoinDesk.
This story originally appeared on Coindesk