An analyst explained how Solana decided on its next significant move after rising to the resistance level of the parallel channel at $210.
Solana has recently been trading within a parallel channel
In a new article on X, analyst Ali Martinez discusses Solana's movement from the perspective of technical analysis (TA) patterns. The pattern is a parallel channel, which forms when the asset price fluctuates between two parallel trend lines.
The upper line of the channel is viewed as a resistance level, which means that a top is likely to occur upon its retest. Similarly, the lower line is considered to provide support to the price, helping it to bottom out. A breakout above or below either of these boundaries could indicate that the trend will continue in that direction. In other words, a breakout from the parallel channel could be a bullish signal, while a breakdown could lead to a bearish trend.
There are several different types of parallel channels, depending on the direction of the channel relative to the chart axis. A channel with a positive slope is called an ascending channel, while a channel with a negative slope is called a descending channel.
In terms of the current topic, the third type, which is also the simplest, is what we are interested in: the parallel channel, which runs parallel to the timeline. This situation corresponds to the asset's true sideways consolidation phase.
Now, here is the chart shared by Martinez, showing that Solana's 4-hour price has remained within the parallel channel over the past few weeks:
As shown in the figure above, Solana retested the lower boundary of the parallel channel last week and successfully found support. Since then, the cryptocurrency has continued to rise, approaching the resistance level of $210. Considering the current trend of this currency, analysts point out that its price may retest $210 before making the next significant upward movement. However, even if such a trend occurs, its direction remains uncertain.
Given that the level of $210 corresponds to the resistance line of the parallel channel, a retest may push Solana down to around $176 support. However, this retest could also potentially lead to a breakout. In this case, SOL would naturally welcome sustained bullish momentum. Whether either of these scenarios will impact Solana, if the parallel channel holds and retests, remains to be seen.
SOL price
At the time of writing, Solana's price is fluctuating around $200, having risen more than 7.5% over the past seven days.
