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Cryptocurrency Traders Look for Clues in Solana Triangle (SOL) Pattern
Cryptocurrency traders looking for clues about the next possible move in Solana’s programmable blockchain token SOL should closely monitor the digital asset’s months-long triangular price consolidation.
This is 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 momentum, with pullbacks supported around $120 and price recoveries progressively shallower.
This has led to a so-called descending triangle pattern, which includes a downward sloping trendline, representing lower highs, and a flat trendline, representing a solid support level. The pattern indicates seller dominance; therefore, a breakout represents renewed upside momentum.
“A breakout would signal a bullish continuation of the long-term uptrend, placing secondary resistance near $202. The triangle’s support is near $132,” analysts at Fairlead Strategies said in a note to clients on Monday.
“We remain neutral until a turning point occurs,” analysts added.
According to CoinDesk data, Solana was trading at $155 at press time.