Solana (SOL) is grabbing attention in the altcoin market and moving towards its resistance level around $161. The SOL is forming a bullish pennant pattern on its price chart, which often leads to a bullish reversal. Both traders and investors are closely watching this coin to recover the losses from recent prolonged volatility. If a successful breakout occurs then it will lead to a maximum breakout towards higher resistance areas.
At the time of writing, SOL is trading at $151.30 with a 24 hour trading volume of $3.02 billion and a market capitalization of $80.91 billion. The SOL price over the last 24 hours is up by 7.23% and over the last week it is also up by 9.72% and showing high potential for the next major rally.
SOL shows high potential and eager to approach $161 resistance
Solana (SOL) is currently forming a bullish pennant pattern on the charts, an aged technical pattern that often signals a continuation of upward momentum. The pattern emerges all the more prominently against the larger uncertainty climate of the market, perhaps signalling that SOL is exhibiting relative strength. The pattern, consisting of narrowing price action following a sharp upward ascent, often culminates in a breakout that goes the same way, portending another upward movement perhaps.
Price action has consolidated just below resistance, with the bears and the bulls locked in a temporary stalemate. However, the pennant configuration itself implies pressure is building, and a break will be imminent. Traders are aiming at $144.8 as the perfect entry point, with support nearby at $142.2, where a stop-loss is recommended to keep risk limited on a break towards the downside. Validation by volume will be the determining factor for the strength of the break.
As momentum builds strength and a breakout occurs, the target for the setup is the $161.0, a projection of the movement given the length of the pennant’s first flagpole. So long as bear sentiment emanates from the market, this candle pattern provides an appealing short-term setup for the technical analyst. Solana’s recent pattern can be a turning point, if not at least a Tradable moment, in an otherwise stagnant altcoin climate.
