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Crypto investors have been closely monitoring the price movements of Solana's SOL token, which has been consolidating in a triangle formation for several months.
Crypto Traders Are Observing Solana's Triangle Formation for a Potential Bullish Breakout
Analysts at Fairlead Strategies suggest that this pattern could signal a significant price rally if a breakout occurs.
The SOL token, associated with the programmable blockchain Solana, is the world's fifth-largest cryptocurrency by market cap.
In the first quarter of the year, its price nearly doubled to over $200, driven by the launch of spot Bitcoin exchange-traded funds (ETFs) in the US, which boosted broader market bids.
However, since then, SOL's upward momentum has slowed, with its price falling back to around $120 multiple times and experiencing increasingly weaker recoveries.
This price action formed a descending triangle pattern, characterized by a downward sloping trendline representing lower highs and a flat trendline indicating strong support.
Such a pattern typically indicates seller dominance, but a breakout could reverse this trend and signal renewed upward momentum.
“A breakout would signal a continuation of the long-term uptrend in the upside direction, bringing the secondary resistance closer to $202.
Fairlead Strategies analysts noted in a client note that triangle support lies around $132. “We have a neutral bias until a breakout occurs,” they added.
Solana was trading at $155 at the time of writing. Investors and analysts will be watching closely to see if SOL can break out of its triangle consolidation and set the stage for a potentially significant price increase.
*This is not investment advice.