Markets
Cryptocurrency Traders Look for Clues in Solana (SOL) Triangle Pattern
Cryptocurrency traders looking for clues about the programmable blockchain’s possible next move Solana’s SOL token are likely to closely monitor the digital asset’s months-long triangular price consolidation.
That’s the message from analysts at Fairlead Strategies, who see a possible breakout of the triangle as a catalyst for further price action.
SOL, the world’s fifth-largest market cap, nearly doubled to over $200 in the first quarter as the debut of the Bitcoin spot ETF in the U.S. galvanized bids for the broader market. Since then, the uptrend has lost momentum, with sustained pullbacks around $120 and progressively weaker price recoveries.
This has resulted in a descending triangle pattern, comprising a descending trendline, representing lower highs and a flat trendline, representing a strong support level. The pattern indicates seller dominance; therefore, a breakout represents further upward momentum.
“A breakout would mark a bullish continuation of the long-term uptrend, placing secondary resistance near $202. Triangle support is near $132,” Fairlead Strategies analysts said in a note to clients Monday.
“We maintain a neutral stance until a breakout occurs,” the analysts added.
According to CoinDesk data, Solana was trading at $155 at press time.