Solana (SOL) Could Be Setting up for a Major 53% Move, Here's Why

In a new post on X, analyst Ali Martinez discussed a pattern that has recently taken shape in Solana's daily price chart. The technical analysis (TA) pattern in question is a “Symmetrical Triangle,” which, as its name implies, looks like a triangle.

An analyst has observed a Symmetrical Triangle pattern forming in Solana's price chart, suggesting a potential 53% price move.

Solana's price action has been consolidating within a Symmetrical Triangle pattern on the daily timeframe, as highlighted by an analyst on X. This technical analysis (TA) pattern is characterized by two converging trendlines, where the upper line connects lower highs and the lower line joins higher lows.

Both trendlines approach each other at a roughly equal slope, giving the pattern its "symmetrical" appearance. As the asset's price consolidates within the triangle, resistance is typically encountered at the upper trendline and support at the lower trendline.

A breakout from either trendline often signals a continuation of the trend in that direction. Hence, a breakout above the triangle could indicate a bullish continuation, while a decline below the pattern could lead to a bearish outcome.

In addition to the Symmetrical Triangle, other triangle patterns commonly used in TA include the Ascending and Descending Triangles. These patterns differ from the Symmetrical Triangle in that one of their trendlines is parallel to the time axis.

The following chart, shared by the analyst, illustrates the Symmetrical Triangle pattern that 1-day price of Solana has been forming over the past several months.

Solana price 1-day chart. Source: X

As shown in the chart above, Solana has been gradually converging at the apex of this Symmetrical Triangle pattern. As the consolidation tightens, the likelihood of a breakout from the pattern also increases.

The direction of the potential price move is determined by the trendline from which the breakout occurs. "Watch the $143 support and $178 resistance levels to gauge the direction of the SOL trend," the analyst notes.

Judging by the chart, Solana is currently positioned close to the lower trendline, suggesting a possible retest in the upcoming sessions. If bullish momentum is to return for the coin, this retest will need to be successful.

Breakouts from a Symmetrical Triangle can often lead to price movements that are roughly equal to the height of the triangle. In this case, the height of the Solana Symmetrical Triangle measures a price swing of 53%, leading the analyst to suggest that a breakout could also set the coin up for a move of a similar magnitude.

Solana price experiences turbulence over last 24 hours, dropping 3.6% to reach $149.2 at the time of writing. The coin's price has now declined over 71% from its all-time high (ATH) of $508, which was set on January 4.

However, Solana's price is still up over 3,800% year-to-date (YTD).