Solana (SOL) has had a bumpy ride, with price swings of up to 86 percent at one time during the market turbulence that caused cryptocurrencies to roll over at the start of the week. Price action in Solana has weathered the storm admirably and was never truly threatened, as a repeating pattern retains its significance even during a correction.
The pattern has been present since August 28 and is relatively easy to notice. The purple short-term trend lines on the chart help you identify it. A purple line builds the backbone for the following leg upwards every time. After a strong break higher, price falls back down and includes a new purple short-term trend line, indicating that another portion higher is on the way. This pattern has already occurred four times and is currently repeating itself for the fifth time.
On days with a lot of variation in price action, the previous short-term trend lines were used as support in case the previous pattern broke. This was the case on September 7 and September 8.
Although the trend line that began on September 3 is declining, it still has significance because it has been tested twice on the downside and once on the upside. This level around $150 should sustain a subsequent downturn now that resistance has turned to support.
Solana is currently testing the price action around $185. Price activity is becoming choppy, with buyers cashing in on their profits, with the climbing purple trend line below and the R2 monthly resistance at $190.
Another reason for the significance of these patterns, and why they will retain support, is that they fall in line with a Fibonacci retracement fairly neatly. Fibonacci levels offer another cause for support and buyers to keep adding volume to the rally, in addition to the pattern repeat.
For a retest of $221.37, expect a higher surge. From there, it’s an obvious objective of $250, with the R3 monthly resistance at $248.12 just below there.