Solana has shown a potential breakout from a Symmetrical Triangle. Here’s where the next price target could lie, according to an analyst.
Solana Has Surged Above Symmetrical Triangle Resistance
In a new post on X, analyst Ali Martinez has talked about how Solana has just broken a resistance line. The level in question is part of a Symmetrical Triangle, a pattern from technical analysis (TA).
This pattern belongs to the class of triangles, formations that involve the asset trading within two converging trendlines. The upper line acts as a source of resistance, while the lower one as that of support.
A break out of either of these levels implies a continuation of trend in that direction. A surge above the triangle is a bullish sign and a drop under it a bearish one. Since the price’s range becomes narrower as it travels within a triangle, a breakout can become more likely as it approaches the apex.
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Generally, triangle breakouts are considered to be of the same length as the height of the formation (that is, the distance between the upper and lower trendlines at their widest).
There are three popular triangle types: Ascending, Descending, and Symmetrical. The first and second variants have one trendline parallel to the time-axis. In the case of the Ascending type, it’s the upper level. This means that as Solana moves inside an Ascending Triangle, its range gets narrower toward a net upside.
Similarly, the Descending Triangle involves the opposite setup, with the support line being parallel to the time-axis instead. The third type, the Symmetrical Triangle, is the middle ground between the two: it has the two trendlines approaching each other at a roughly equal and opposite slope.
In other words, the Symmetrical Triangle represents a period of consolidation where the range gets narrower in true sideways fashion. Due to this fact, a breakout is more-or-less equally probable to occur in either direction. In contrast, there is a bias associated in Ascending and Descending Triangles.
Now, here is the chart shared by Martinez that shows the Symmetrical Triangle Solana was trading inside just earlier:
As is visible in the above graph, the Solana price was nearing in on the end of the triangle and as probability would dictate, a breakout was becoming likely. The asset indeed ended up finding a break and it seems to have been in the up direction.
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So what could be next for SOL? According to the analyst, the asset might target $164. This level corresponds to the 1.272 Fibonacci Extension line. Fibonacci Extension levels are defined based on ratios found in the popular Fibonacci series.
The 1.272 level, in particular, corresponds to the square root of 1.618, which is the famous ‘Golden Ratio.’
SOL Price
At the time of writing, Solana is floating around $158, up 3% in the last 24 hours.
Featured image from Dall-E, charts from TradingView.com
