One analyst explained how Solana could decide on its next big move after rising to $210, the resistance level of the parallel channel.
Solana has been trading within a parallel channel recently
In new mail At X, analyst Ali Martinez talked about how Solana’s trajectory looks from a technical analysis (TA) pattern perspective. The pattern in question is a parallel channel, which is formed when the price of an asset trades between two parallel trend lines.
The upper line of the channel is a source of resistance, which means that tops are likely to appear when it is retested. Likewise, the lower level is supposed to provide support to the price, helping it reach the lows. A breakout of any of these limits could indicate a continuation of the trend in that direction. This means that a rise above the parallel channel could be a bullish signal, while a fall below it could lead to a bearish movement.
There are a few different types of parallel channels, depending on how the channel is oriented relative to the chart axes. Channels that have a positive slope are known as bullish channels, while channels that slope downward are called bearish channels.
In the context of the present topic, the third and simplest type is the one of interest: a parallel channel that is also parallel to the time axis. This situation corresponds to the stage of true sideways consolidation of the asset.
Now, here is the chart Martinez shared that shows the parallel channel that the 4-hour Solana price has been stuck inside for the past two weeks:
As shown in the chart above, Solana retested the lower level of the parallel channel last week and successfully found support. Since then, the cryptocurrency has risen and approached the resistance level located at $210. Given the currency’s current trajectory, the analyst indicated that its price may be heading for a retest at $210 before making its next big move. However, the direction of such a move, if it happens, remains uncertain.
Given that the $210 level corresponds to the resistance line of the parallel channel, a retest could see Solana rejected all the way down to the support level around $176. However, it is also possible that this retest could lead to a breakout. In this case, it is normal for SOL to see a continued upward push. It now remains to be seen which of the two scenarios will apply to the asset if the parallel channel continues and a retest is performed.
Sol price
At the time of writing, Solana’s price is trading around $200, an increase of over 7.5% in the past seven days.
The post Solana Eyes $210 Before Its Next Major Move—Uptrend Or Fakeout Ahead? first appeared on Investorempires.com.
