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Solana (SOL) Might Make Epic Comeback If This Pattern Validates

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Mon, 29/01/2024 - 13:45
Solana (SOL) Might Make Epic Comeback If This Pattern Validates
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Solana (SOL) might be ready for an epic rally if a certain chart pattern validates. The pattern is a descending parallel channel drawn by connecting the lower highs and lower lows of the price, with parallel trendlines to indicate a downward trend.

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A breakout, which occurs when the price breaks the upper or lower borders of the channel, is a stronger indication. When this happens, the price might move quickly and sharply in the direction of that breakout.

Crypto analyst Ali calls attention to a descending parallel channel on Solana's four-hour chart, demonstrating its price declines in the very short term. According to Ali, Solana appears to be breaking out of this descending parallel channel. He further adds that if SOL can hold above $94, it has a great chance of advancing toward $113.

Two scenarios are likely in the case of a descending channel: if the move is in the direction of the previous trend, the descending channel would have been a continuation pattern. If the move goes against the prior trend, the descending channel might be a prelude to a reversal.

In the big picture, SOL remains in an uptrend. Recently, SOL has been steadily rising since reaching $78.87 on Jan. 23 and is poised to post its fourth consecutive day of advances on Jan. 26.

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If a bullish scenario plays out and SOL exceeds $113, as projected by Ali, it may approach the next resistance level at $126.11, which corresponds to the previous highs in December 2023.

A break above this level might spark a fresh upswing and lead to a rise above $200, not seen since January 2022. SOL is now down 0.37% in the last 24 hours to $97.61.

On the other hand, if SOL prices fall, the next support level to watch is $78, which has recently served as a solid demand zone. A breach below $78 would confirm a negative trend and take the price to $67.

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