Solana is forming a textbook ascending triangle on the 4-hour chart, which is generally considered a bullish pattern. Ascending triangles are characterized by higher lows (signaling increasing buying pressure) and a flat resistance line at the top – in this case, around $136.
The structure indicates that buyers are stepping in at progressively higher levels, tightening the price action into a wedge. If Solana breaks out above the flat top with volume, the measured move target would be calculated by taking the height of the triangle and adding it to the breakout point – which could easily send Solana toward $160 or higher.
However, the 50 MA (blue line) is acting as resistance right now, which means bulls need to reclaim that level first to build momentum. A breakdown below the rising trendline would invalidate the bullish setup and could lead to a retest of the $120 zone. For now, the structure remains intact, but a decisive move is coming soon.
Price can break support and still remain a technical ascending triangle - as long as we continue to see higher lows.
Traders generally wait for a break of the flat resistance on top, so keep this one marked.
The structure indicates that buyers are stepping in at progressively higher levels, tightening the price action into a wedge. If Solana breaks out above the flat top with volume, the measured move target would be calculated by taking the height of the triangle and adding it to the breakout point – which could easily send Solana toward $160 or higher.
However, the 50 MA (blue line) is acting as resistance right now, which means bulls need to reclaim that level first to build momentum. A breakdown below the rising trendline would invalidate the bullish setup and could lead to a retest of the $120 zone. For now, the structure remains intact, but a decisive move is coming soon.
Price can break support and still remain a technical ascending triangle - as long as we continue to see higher lows.
Traders generally wait for a break of the flat resistance on top, so keep this one marked.
scott.melker@texaswestcapital.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
scott.melker@texaswestcapital.com
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.