Solana (SOL) Has Delivered a Dramatic Shift in Market Structure, Breaking Above a Descending Parallel Channel

Solana (SOL) has delivered a dramatic shift in market structure, breaking above a descending parallel channel that had dominated its price action for several weeks.

Solana (SOL) has displayed a dramatic shift in market structure as it slices through a descending parallel channel.

This breakout could position the token for a potential climb toward $213, according to Ali Martinez (@ali_charts), who shared the four-hour chart.

The chart, which spans from January into early March, shows a steadily declining pattern where price repeatedly tested and respected both the upper and lower boundaries of the channel before the latest bullish push propelled SOL beyond the channel’s resistance.

The descending parallel channel highlighted in Martinez’s analysis is visually evident from a series of lower highs and lower lows, forming a consistent downward slope. Each brief recovery in previous weeks failed to clear the channel’s midline, suggesting that sellers had a stronger presence.

However, once SOL’s price managed to rise above this midline, bullish momentum began to build, ultimately leading to a breakout above the channel’s upper boundary. This kind of channel breakout is often a sign that sellers are getting exhausted, allowing buyers to take more control of the market.

This breakout also comes with two major catalysts for Solana. First, the massive Solana unlock by the FTX estate is now done (March 1).

Second, yesterday, US President Donald Trump announced the inclusion of Bitcoin, Ethereum, XRP, Cardano and Solana in the United States’ Strategic Crypto Reserve.

One of the most critical elements in Martinez’s forecast is the $213 target, which is derived from the channel’s height from the breakout point in combination with 0.382 Fibonacci retracement level. Currently, in the aftermath of a breakout, a retest of the broken resistance is taking place —to turn it into support. The $160-165 zone is the area where buyers might attempt to defend the token’s new uptrend.

To the upside, the key Fibonacci retracement levels above Solana’s current price of $170.19 are $174.11 (0.618), $192.62 (0.5), $213.11 (0.382), and $241.50 (0.236), with the full retracement level at $295.60 (0.0) serving as the ultimate bullish target based on the chart’s structure.

The overall sentiment among analysts supports Martinez’s bullish outlook. Jelle (@CryptoJelleNL) pointed to the significant Solana unlock event that is now behind us and underscored the fact that the weekly candle closed in the green. According to his observations, SOL has managed to reclaim a crucial level of support after touching its new lows, and a trendline from the previous high remains intact.

“Massive $SOL unlock behind us, and the weekly candle closed in the green. Lows taken out, support retested, trendline holding. Pretty sure the next SOL push sends it into price discovery – hard,” he noted.

Adding to the positive market narrative, Chris Burniske, a partner at Placeholder VC, remarked via X that BTC, ETH, and SOL all posted favorable closes on the weeklies and that the long-term trend across these leading cryptocurrencies remains to the upside.

“BTC ETH and SOL couldn’t have asked for better closes on the weeklies. The long term trend remains: UP,” Burniske says.

From a technical perspective, much hinges on Solana’s ability to sustain its breakout. The descending channel had functioned as a clear indicator of bearish sentiment, and breaching it signals a significant change in the market’s psychology.

At press time, SOL was trading at $164.