Crypto Traders Search for Clues in Solana’s Triangle Pattern

• SOL’s daily chart shows a triangular consolidation pattern.

• A breakout would signal a continuation of the broader uptrend, according to Fairlead Strategies.

Crypto traders looking for clues on the next possible move in programmable blockchain Solana’s SOL token should closely track the digital asset’s months-long triangular price consolidation.

That’s the message from analysts at Fairlead Strategies, who see a potential triangle breakout as a catalyst for a renewed price rally.

SOL, the world’s fifth-largest market value, nearly doubled to over $200 in the first quarter as spot bitcoin ETF debut in the U.S. galvanized bids for the broader market. Since then, the uptrend has lost steam, with pullbacks supported at around $120 and progressively shallower price recoveries.

That has 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; hence, a breakout represents renewed upside momentum.

“A breakout would mark a bullish continuation of the long-term uptrend, putting secondary resistance near $202. Triangle support is near $132,” analysts at Fairlead Strategies said in a note to clients Monday.

“We hold a neutral bias until a breakout unfolds,” analysts added.

Solana changed hands at $155 at press time, according to CoinDesk data.

Please note that our

privacy policy,

terms of use,

cookies,

and

do not sell my personal information

has been updated

.

CoinDesk is an

award-winning

media outlet that covers the cryptocurrency industry. Its journalists abide by a

strict set of editorial policies.

In November 2023

, CoinDesk was acquired

by the Bullish group, owner of

Bullish,

a regulated, digital assets exchange. The Bullish group is majority-owned by

Block.one; both companies have

interests

in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin.

CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.