Analysis: The price trend of SOL shows a bullish regression pattern, which may lay the foundation for a larger scale bull market

Renowned crypto analyst Omkar Godbolev published an analysis article stating that the price chart of SOL shows a bullish retracement pattern. According to technical analysis theory, this pattern is considered a low-risk opportunity for trend breakout traders.

The price of SOL soared by more than 7% this week to $193, rebounding from the previous resistance level determined by the trend line connecting the highs of March and July into a support position. This line and the one connecting the lows in April and August define a large downward channel, including long-term range fluctuations from March to October. The price of SOL broke through this channel at the beginning of November, confirming its bullish tendency. SOL quickly climbed above $260, then fell back to its breakout point last week; technical analysts call this round trip a bullish retracement pattern.

A similar retracement pattern was perfectly presented on Bitcoin in the second half of 2023, laying the foundation for a large-scale bull market. (CoinDesk)