Market analyst Ali Martinez believes Solana is on the verge of an 868% upsurge to $1,630 after a breakout from its bull pennant.
For the uninitiated, a bull pennant pattern typically forms as a continuation pattern. The formation occurs when there is a pause in the upward movement of an asset. For Solana, the flagpole of this bull pennant was established during its remarkable recovery from a prolonged downtrend in 2023.
Solana Forms Bull Pennant
Notably, in September 2023, SOL’s price bottomed out at $17.34 following a bearish performance throughout the year. However, from the $17.34 low, Solana embarked on a powerful rally, culminating in a peak of $209 by March 2024. This recovery established the height of the flagpole.
Following the $209 peak, which coincided with Bitcoin’s (BTC) all-time high, the SOL price faced a correction as investors booked profits. This corrective phase, which spilled into this month, occurred as Bitcoin and the rest of the market retraced. The correction formed the pennant itself.
SOL Targets 868% Rally to $1,630
The price consolidation within the pennant’s boundaries was marked by decreasing volatility and narrowing price action. Now, Martinez confirms that Solana has broken out of the pennant following a massive 24.93% rise last week. The rebound came on the back of the latest broader market recovery.
#Solana $SOL has officially broken out from this bull pennant, suggesting a potential 900% rally ahead. pic.twitter.com/CWQdWGny0X
— Ali (@ali_charts) July 24, 2024
The breakout above the upper trendline of the pennant marks a switch in market sentiment. Ali Martinez expects the upcoming upsurge to push Solana by 868% to a new all-time high at $1,630.
While the breakout from the pennant is a bullish signal, current market conditions are not equally favorable. As of the latest data, Solana’s price has faced some downward pressure, coinciding with a broader market downturn. Notably, Bitcoin has collapsed by more than 3% today, bringing the rest of the market down.
Solana currently trades around $166.61, representing a significant 9.70% decline this week alone. The Fisher Transform indicator currently shows a negative reading. This indicator, often used to identify turning points in the market, suggests that the recent price movement might not immediately align with the bullish breakout expected from the pennant.
Interestingly, Martinez warned of this pullback in an analysis three days ago. The market watcher cautioned on July 21 that the TD Sequential flashed a sell signal on three Solana timeframes. He subsequently stressed that the expected 868% rise will not occur in a linear manner. According to him, corrections will continue to emerge.
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