The analyst explained how Solana could decide on the next big move after rising to the parallel channel resistance level of $210.
Solana has recently been trading within parallel channels
In a new post on X, analyst Ali Martinez talked about what Solana’s trajectory looks like from a technical analysis (TA) pattern perspective. The pattern in question is a parallel channel, which is formed whenever the price of an asset trades between two parallel trend lines.
The upper line of the channel is considered a source of resistance, meaning that an upside is likely to appear on its retest. Similarly, lower levels are believed to support the price and help the price reach the bottom. A breakout of any of these boundaries could signal a continuation of the trend in that direction. That is, a rise above the parallel channel can be a bullish signal, while a fall below the parallel channel can lead to bearish action.
There are several different types of parallel channels, depending on how the channels are arranged with respect to the graph axes. A channel with a positive slope is called an ascending channel, and a channel with a downward slope is called a descending channel.
In the context of the current topic, the third and simplest type is interesting. This is a parallel channel that is also parallel to the time axis. This case corresponds to the phase of true horizontal integration in assets.
Here, the chart Mr. Martinez shared shows a parallel channel that shows Solana’s 4-hour price has been stuck internally for the past few weeks.
As shown in the chart above, Solana successfully retested the lower levels of the parallel channel last week and found support. The cryptocurrency has since moved higher and is approaching the $210 resistance level. Analysts note that considering the coin’s current trajectory, its price could be headed for a retest at $210 before making its next big move. However, if such a move occurs, its direction remains unclear.
Given that the $210 level corresponds to a parallel channel resistance line, a retest could deny Solana to the support level near $176. However, there is a possibility that this retesting may actually lead to a breakout. In this case, SOL could naturally see a sustained bullish push. It remains to be seen which of the two scenarios will be deployed to the asset if parallel channels are maintained and retested.
sol price
At the time of writing, Solana’s stock price is hovering around $200, and has risen more than 7.5% in the past seven days.
