A crypto analyst has pointed out that Solana could be on track for a 10% price move, based on a technical analysis (TA) pattern in its hourly chart.
Solana May Be Forming a Symmetrical Triangle
In a recent post on X, analyst Ali Martinez discussed a TA pattern appearing in Solana’s 1-hour price chart. The pattern is a Symmetrical Triangle, a type of consolidation channel that looks like a triangle, just as its name suggests. It’s made up of two trendlines: the upper one acts as resistance, and the lower one provides support. Like other consolidation patterns in TA, a break above or below these lines can signal a move in that direction. So, a rise above the triangle could be a bullish sign, while a drop below the lower line could be bearish.
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What makes a Symmetrical Triangle unique is that its trendlines slope at roughly equal but opposite angles. As the price moves within this channel, its range narrows down to a midpoint. Besides the Symmetrical Triangle, there are other triangle patterns in TA. An Ascending Triangle forms when the upper trendline is flat (parallel to the time axis), while a Descending Triangle appears when the lower trendline is flat.
Now, here’s the chart Martinez shared, showing the Symmetrical Triangle that Solana’s hourly price has been trading in over the past couple of weeks:
As the chart shows, Solana’s 1-hour price has been moving within the Symmetrical Triangle and is now near its apex. At this point, the range naturally gets tight, so the trendlines get tested more often. More tests mean a higher chance that one of the levels will break. That’s why breakouts are most likely to happen near the triangle’s apex.
If a breakout does happen for SOL from here, it could lead to a sustained move. Based on the triangle’s height, the analyst notes this move could be around 10%.
So, which direction might the break go? For Symmetrical Triangles, breakouts are usually considered equally likely in either direction. That’s because the pattern doesn’t have an upward or downward bias, unlike Ascending or Descending Triangles.
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That said, since Martinez made the post, Solana has seen more of a decline, which could be an early sign that the support level might be at higher risk right now.
SOL Price
Solana has dropped to $84 after falling over the past day.
Featured image from Dall-E, chart from TradingView.com
Frequently Asked Questions
Here is a list of FAQs about Solana approaching the tip of a triangle pattern and the potential for a 10 breakout
BeginnerLevel Questions
1 What is a triangle pattern in crypto
Its a chart pattern where the price makes lower highs and higher lows squeezing into a tighter range Think of it like a spring being coiledeventually it has to break out in one direction
2 Does this mean Solanas price will definitely go up 10
No A breakout can go either wayup or down A 10 move is possible but it could be a drop instead of a rally Traders watch for a clear move above or below the triangles lines
3 Why is everyone talking about a tip or apex of the pattern
The apex is where the two lines of the triangle meet The closer the price gets to this point the more likely a sudden sharp move becomes because the price has less room to keep bouncing
4 Is this a good time to buy Solana
Not necessarily Triangle patterns are risky because the direction is unknown Many traders wait for the breakout to happen first then buy if its a clear move up with high volume
AdvancedLevel Questions
5 Whats the difference between a symmetrical ascending and descending triangle
Symmetrical Lower highs and higher highs Breakout direction is unknown
Ascending Flat top and rising bottom Breakout is usually upward
Descending Flat bottom and lower highs Breakout is usually downward
Solanas pattern type determines the likely direction
6 How do I calculate a 10 target from a triangle breakout
Measure the height of the triangle at its widest point Add that height to the breakout price for an upside target or subtract it for a downside target If the height is 5 the target is 5 from the breakout not necessarily 10
7 What role does trading volume play in a triangle breakout
Volume confirms the move A breakout with