Market analyst Ali Martinez projects a 53% price rebound for Solana (SOL), potentially driving the asset to $280 amid a symmetrical triangle formation.
The ongoing market downturn has sunk Solana by over 13% in the past week. However, the asset has now shown signs of a major price movement. Analyst Martinez recently called attention to Solana’s potential bullish breakout in a recent update on X. According to the analyst, SOL is gearing for a 53% uptick in its market price.
In the analysis, Martinez identified critical support and resistance levels at $143 and $178, respectively. Martinez stated these thresholds are essential for predicting whether Solana will undergo a robust price ascent or face a downturn.
#Solana is set for a major 53% price move! Keep an eye on the $143 support and $178 resistance levels to gauge the direction of the $SOL trend. pic.twitter.com/SB9tJ6D02u
— Ali (@ali_charts) June 12, 2024
Solana Forms Symmetrical Triangle
Notably, the chart accompanying Martinez’s analysis indicated that Solana’s candlestick patterns over the last two months have formed a symmetrical triangle, typically recognized as a bullish breakout signal.
In mid-March 2024, Solana’s price entered this symmetrical triangle formation amid a surge from around $101 to nearly $210. After multiple rejections at the $210 level, the price retraced and found support around $141, coinciding with the 0.382 Fibonacci level.
Subsequently, Solana’s price surged again, meeting resistance around the 0.786 Fibonacci level at $185. Upon reaching this level in early June 2024, Solana dipped back to $157.
Currently, Solana’s price hovers near $150.95, marginally above the 0.5 Fibonacci level at $143. This area is critical as it aligns with the lower boundary of the symmetrical triangle, posing a potential make-or-break scenario for Solana.
Potential Breakout or Breakdown?
Martinez’s insights suggest that the resolution of this symmetrical triangle could lead to a decisive 53% price movement. If Solana’s price sustains above the support level at $143, it may pave the way for a rebound toward the $178 resistance.
This critical zone, if breached, could confirm Martinez’s projection of an upward trajectory. Estimating a 53% increase as per Martinez’s analysis, the SOL token could potentially reach the $280 mark.
Conversely, a drop below the crucial $143 support could signal further declines, with deeper Fibonacci levels likely coming into play. Should this move occur, an estimate of the $67 region could be seen.
SOL Indicators
On the daily chart, the RSI indicator moves downward at 41.50, close to the oversold region at 35. This suggests that the SOL token may be nearing a potential buying opportunity around the $143 support level. If this occurs, a rebound toward $178 could be imminent.
Meanwhile, the Chaikin Money Flow Index is trending below the zero line at -0.13. This indicates a decrease in the influx of money into the Solana market, potentially leading to further downward pressure on the SOL token price.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
