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Solana needs to clear a hurdle to retest the all-time high

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  • Solana’s price broke out of a symmetrical triangle on October 1 and rallied 23%.
  • However, SOL is struggling with momentum as it sits above $170.72 support.
  • A decisive close above $188.21 will open a resistance-free path to retest the all-time high at $216.91.

Solana’s price consolidated between September 21 and 31, forming a symmetrical triangle pattern. A surge in upside momentum led to a breakout, pushing SOL up by 23%. However, the altcoin can go higher, but needs to overcome a crucial resistance barrier.

Solana

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Solana price should recover against all odds.

Since September 21, the Solana price has established two lower highs and three higher lows. Using trendlines to connect these points reveals the formation of a triangle pattern. This technical formation forecasts a 24% breakout, determined by measuring the distance between the first high and the first low.

The market price of Solana broke above the upper trendline on October 1, triggering a breakout. Since then, SOL has rallied above resistance levels of $150.34 and $170.73. However, it failed to reach the expected target at $179.43.

On the six-hour chart, the momentum reversal indicator (MRI) indicated a sell signal as the price of SOL consolidates above the $170.73 support.

This technical formation forecasts a correction. Although Solana’s price has already created a red candle on the 6-hour chart, the decline is not yet over.

If SOL closes decisively above $188.20, it will create a barrier-free path for the price of Solana to retest its all-time high of $216.91.

Despite the positive outlook for Solana price, a break below $170.73 will indicate that investors are taking profits off the table.

SOL’s price will likely pull back to $150 before giving the uptrend a second chance. However, a break below this support will invalidate the bullish thesis.

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Michelle D. Madsen

Michelle D. Madsen graduated from the University of Westminster and has been deeply involved in the world of finance ever since. She has worked as a Broadcast Journalist hosting various news shows and informative webcasts about the financial markets. Since 2004 she has also been writing for Metanews daily, her attention to detail, and her in-depth knowledge of the financial markets have led her to cover Foreign Exchange and commodities. The world of finance has changed in the last few years with the introduction and rising popularity of cryptocurrencies. She has in no means been left behind, adding this to her bank of intellect and is now also an expert in cryptocurrencies. For the last ten years, Ms. Madsen has been engaged in the financial market. She has notedly written a great number of incredibly informative reviews for the crypto exchange and forex brokers. Her wealth of knowledge has enabled her to become a leading expert in the field. She continues to inform the public writing up-to-date, thorough reviews for the readers of Metanews as she has for the last decade.
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