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An analyst has explained how Solana could decide its next big move after rising to $210, the resistance level of a Parallel Channel.
Solana Has Been Trading Inside A Parallel Channel Recently
In a new post on X, analyst Ali Martinez has talked about how the trajectory of Solana is looking from the perspective of a technical analysis (TA) pattern. The pattern in question is a Parallel Channel, which forms whenever an asset’s price trades between two parallel trendlines.
The upper line of the channel is considered a source of resistance, meaning that tops can be probable to appear on retests of it. Similarly, the lower level is assumed to provide support to the price, helping it to arrive at bottoms. A breakout of either of these bounds can signal a continuation of the trend in that direction. That is, a surge above the Parallel Channel can be a bullish signal, while a drop under it may lead to bearish action.
There are a few different types of Parallel Channels, depending on how the channel is oriented with respect to the graph axes. Channels that have a positive slope are known as Ascending Channels, while those that slope downward are called Descending Channels.
In the context of the current topic, the third and simplest type is the one of interest: a Parallel Channel that’s also parallel to the time-axis. This case corresponds to a phase of true sideways consolidation in the asset.
Now, here is the chart shared by Martinez that shows the Parallel Channel that the 4-hour price of Solana has been stuck inside for the last couple of weeks:
As displayed in the above graph, Solana retested the lower level of the Parallel Channel last week and successfully found support. The cryptocurrency has since been rising and nearing the resistance level, located at $210. Considering the coin’s current trajectory, the analyst has noted that its price may be heading for a retest at $210 before making its next big move. However, the direction of such a move, if one happens, remains uncertain.
Given that the $210 level corresponds to the resistance line of the Parallel Channel, it’s possible that a retest could reject Solana all the way back down to the support level around $176. It’s also possible, though, that this retest could instead lead to a breakout. In this case, SOL could naturally see a sustained bullish push. It now remains to be seen which of the two scenarios will play out for the asset if the Parallel Channel holds and a retest takes place.
SOL Price
At the time of writing, Solana is floating around $200, up over 7.5% in the last seven days.
Featured image from Dall-E, charts from TradingView.com
Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.
Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.
In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.
Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.
Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..
Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.
Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.
As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.
Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.
Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.
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