A cryptocurrency analyst stated that Solana is currently breaking out of the ascending triangle, with a target price potentially around $300.
Solana is breaking out of the ascending triangle.
In a new article on X, analyst Ali Martinez discussed the triangle technical analysis (TA) pattern formed in Solana's 12-hour price. This pattern is called an 'ascending triangle' and occurs whenever the asset's price consolidates between two converging trend lines.
This pattern is characterized by an upper trend line that is parallel to the timeline, while the lower trend line is sloping upwards. This means that when the price fluctuates between the two trend lines, the range of fluctuation will contract upwards.
Like any consolidation pattern, the upper line of the ascending triangle may pose resistance to the price, while the lower line serves as support. A breakout above either of these levels could signal that the price will continue in that direction: a breakout from the triangle is a bullish signal, while a breakdown from the triangle is a bearish signal.
Similar to the ascending triangle, a descending triangle also exists, and the two are very similar, except that its lower line is parallel to the timeline. Typically, in an ascending triangle, there is a greater chance of breaking the resistance line; while in a descending triangle, there is a greater chance of breaking the support line.
Now, this is the chart shared by the analyst, showing the ascending triangle that appeared in Solana's 12-hour price:
As shown in the chart above, Solana has been trading within this pattern for months and has recently been attempting to break out of it. At this moment of attempting to break the resistance line, SOL is approaching the apex of the triangle.
Typically, the closer the price gets to the end of the pattern, the greater the likelihood of a breakout. This is because the consolidation range becomes quite narrow near the peak. A similar effect may currently be observed in cryptocurrencies.
Martinez stated that if the latest attempt indeed triggers sustained bullish momentum, Solana may focus on the $300 level. This level is approximately near the 1.618 Fibonacci extension.
Fibonacci extension lines are drawn on price charts based on ratios from the Fibonacci sequence. The 1.618 ratio particularly corresponds to the famous golden ratio.
If Solana eventually rises to the target of $300, its price will increase by about 46% from its current value.
SOL price
At the time of writing, Solana's price is around $205, with an increase of over 5% in the past week.
