For the last month, Solana [SOL] has been struggling to sustain an upward trend. The recent market crash intensified the lack of momentum, with Solana taking a significant hit compared to other major cryptocurrencies.
During this period, SOL saw a decline to $220, marking a 12.06% decrease. However, the drop halted as SOL managed to climb back to $243.95.
Solana’s Breakout from the Symmetrical Triangle
The recent downturn raised concerns among cryptocurrency enthusiasts regarding Solana’s future path. In light of this, renowned crypto analyst Ali Martinez predicted a potential 20% surge based on Solana’s symmetrical triangle pattern.
Martinez’s analysis highlighted Solana’s trading within a symmetrical triangle, a formation characterized by two trendlines representing higher lows and lower highs.
Such patterns typically indicate a state of market indecision, where neither buyers nor sellers have full control. Prices tend to converge towards the triangle’s midpoint as trading progresses within this pattern.
A breakout above the triangle would signal a potential uptrend, while a breakdown below could lead to a bearish scenario.
Martinez suggested that Solana might witness a 20% breakout if it successfully closes above the $251-$262 range.
Failing to breach this level could indicate a bearish trend. Despite the optimistic prediction, the recent market turmoil led to Solana breaking below the triangle, hinting at possible further losses.
Is SOL Positioned for a Reversal?
According to analysis from CryptoCrypto, Solana shows signs of strengthening upward momentum following the recent market turbulence.
This could potentially lead to an upward breakout for the altcoin.
Notably, Solana’s Options Volume (OV) and Options Open Interest (OI) have surged on daily charts. OV surged by 96.88% to $3.76 million, while OI increased by 12.93% to $15.60 million.
An uptick in OV indicates heightened trading activity, while a rise in OI suggests an increase in contract creation, reflecting growing interest.
Furthermore, the market sentiment remains predominantly bullish, as indicated by the Long-Short Ratio. Long positions have consistently dominated the market, accounting for 75.45% on daily charts.
Such dominance suggests that traders anticipate price appreciation.
Overall sentiment remains positive, with the Weighted Sentiment staying in the green for the past six days. This positive sentiment indicates a favorable outlook for the altcoin, with expectations of price recovery.
Despite Solana dipping below the symmetrical triangle during the recent market downturn, the altcoin has shown signs of recovery, climbing to $242, reflecting a 5.32% increase on daily charts.
If the recent positive sentiment persists, Solana could potentially reclaim $260. Crossing this threshold could pave the way for the forecasted breakout by Martinez, with SOL aiming for $314.4.
However, a reversal in the recent trend could result in a correction down to $228.