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Veteran trader Peter Brandt has shared his thoughts on the recent price action of Solana (SOL).
According to Brandt, while it can be argued that Solana has experienced a breakout, he remains skeptical, saying it is not a "signal" to him. He notes that the current price action resembles a diagonal pattern rather than a definitive breakout.
Brandt added that a true breakout might require SOL to surpass its May high. Until this level is penetrated, Brandt doubts the current upward trend is a breakout.
Even if Solana were to break through its May high, Brandt notes that the resistance levels beyond this point are not favorable. This means that any potential gains could be met with significant selling pressure, making it challenging for SOL to maintain its upward trajectory.
"It can be argued that SOL broke out . This is not a signal for me because I consider this to be a diagonal pattern. I do not consider this a BO until May high is penetrated but by then the R:r is not favorable, " Brandt wrote.
Tomiwabold OlajideAt the time of writing, SOL was down 5.82% in the last 24 hours to $168.18, mirroring the broader decline in the general crypto market.
What other analysts think
Ali Martinez, a crypto analyst, believes on the other hand that Solana has officially broken out from a bullish pennant, suggesting a potential 900% rally ahead.
In an earlier tweet, Ali indicated that Solana might be eyeing $1,000 as early signs of a breakout from a bullish pennant suggest a potential 900% rally ahead.
Ali further clarified that the journey to $1,000 might not be a day's journey, noting that "Solana will not go $1,000 in one hour, the flag’s pole took 184 days to form as prices went from $11 to $192. There will be corrections along the way. And one of those is coming potentially to the breakout point at $167 before higher highs."
In a recent tweet, Ali noted a resemblance to Solana's pattern in July 2021 with its current price action.
Dan Burgin
