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Solana (SOL) is striving to regain a significant resistance area for the fourth occasion, prompting some investors to speculate that the surge may be brief. Nevertheless, on-chain insights indicate that SOL’s subsequent upward movement might be commencing.
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Solana Exits Triangle Formation
On Thursday, Solana reached a six-month peak of $216 after breaking free from one of its paramount resistance barriers. The cryptocurrency surged 16% from Monday’s lows and reestablished the $200 threshold as support on Wednesday, closing above this range for the day.
SOL briefly regained this level during the early August breakout; however, the recent market retracements pushed its price down to the $175-$195 range. During Thursday’s surge, market observer Daan Crypto Trades underscored its performance, asserting that it is “at an intriguing juncture.”
The trader elaborated that Solana is engaged in a multi-month upward wedge formation, currently approaching the resistance level that has been persistent for several months. Notably, the cryptocurrency has faced rejections from the upper boundary of the pattern repeatedly since July, retesting the rising support line each time.
Strengthening SOL’s outlook, Daan contended that it has “been robust due to treasury vehicles being initiated and potential upcoming buying + frontrunning,” noting that “rising wedges are typically bearish but in bull markets, it’s not unusual for these to break upwards.” Based on this and the cryptocurrency’s recent performance, he predicted that it would attain higher prices later this year.
In a similar vein, analyst Ali Martinez pointed out a six-month ascending triangle formation on the altcoin’s chart, targeting the $360 range. Solana retested the pattern’s resistance three times over the past month and a half but ultimately failed to convert the $205-$207 area into support.
As the altcoin moved past the $210 level, the analyst raised the question of whether the ongoing breakout endeavor will succeed or if SOL’s increase would be fleeting for the fourth time.
Fourth Time’s The Charm?
Martinez shared several technical indicators that imply Solana could finally escape this formation and aim for the long-anticipated $300 threshold. The analyst explained that the context of social sentiment and on-chain positioning sets the current price movement apart from previous attempts.
In contrast to prior breakout attempts, community sentiment is more tempered this time. “Historically, euphoric sentiment above the ‘230’ index level has coincided with local peaks, as excessive optimism preceded pullbacks,” he detailed. According to the analyst’s chart, sentiment is subdued this time, indicating “skepticism rather than a crowded bullish position.”
Moreover, around $1 billion in realized gains have been recorded following the climb to $212, suggesting that some traders likely remain doubtful about the momentum sustaining during this endeavor.
He also pointed out that there are considerable accumulation levels beneath $207, with several support areas between $165 and $206, providing a robust foundation to continue advancing, which contrasts with the absence of resistance above the $212 area.
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“If buying momentum intensifies, the route toward $300 is comparatively clearer,” Martinez asserted, adding that Solana’s fundamentals, including the proposed Alpenglow consensus upgrade, may also contribute to the breakout.
“With lingering skepticism, robust accumulation below $207, and minimal overhead resistance, this attempt carries a greater likelihood of success compared to earlier setbacks. A confirmed breakout above $212–$215 on sustained volume would redirect focus to the $300 target area,” he concluded.
At the time of this writing, Solana is priced at $212, which marks a 17% increase in the weekly timeframe.
Featured Image from Unsplash.com, Chart from TradingView.com
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