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Solana poised for potential gains with symmetrical triangle breakout

GrafaGrafa2024/08/28 03:00
By:Mahathir Bayena

Solana (CRYPTO:SOL) is approaching a critical point in its price movement as it nears a breakout from a symmetrical triangle pattern on its one-day chart. 

This pattern, which has been forming since July 29, indicates a period of market consolidation where buyers and sellers are vying for control. 

A successful breakout above the triangle's upper line could signal the beginning of a bullish trend, with potential gains on the horizon.

Over the past week, Solana's price has climbed by 5%, bringing it closer to this key resistance level. 

Technical indicators suggest that a breakout could occur soon. 

The Moving Average Convergence Divergence (MACD) indicator shows the MACD line positioned above the signal line, indicating that buying pressure is currently stronger than selling pressure. 

As the MACD line approaches the zero line, it suggests strengthening bullish momentum. 

A move above the zero line would further confirm the bullish trend, encouraging traders to go long on SOL.

Additionally, the Chaikin Money Flow (CMF) indicator reinforces this positive outlook. 

At a current reading of 0.04, the CMF is above the zero line, indicating strong market demand and positive liquidity inflows, both of which are essential for sustaining a price rally.

SOL's funding rate across cryptocurrency exchanges also remains positive, reflecting stronger demand for long positions in the futures market. 

This suggests that traders are optimistic about Solana's price movement and are willing to maintain long positions in anticipation of further gains.

If Solana successfully breaks above the upper line of the symmetrical triangle, its price could rally to $171.91, representing a 12% increase from its current level. 

However, if the market trend turns bearish, SOL's price could fall to the lower boundary of the triangle at $148.27. 

The coming days will be crucial in determining whether Solana can capitalise on this potential breakout or if it will face a pullback.

At the time of writing, the Solana price was $146.87.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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