Solana is currently breaking above an Ascending Triangle that could set a target of around $300, according to a cryptocurrency analyst.
The special feature of the formation is that the upper trendline is parallel to the time-axis, while the lower one is sloped upward. This means that as the price travels between the lines, it observes its range shrink to an upside.
As with any consolidation pattern, the upper line of the Ascending Triangle is likely to present resistance to the price, while the lower one support. A break out of either of these levels can signal a continuation in that direction: a surge above the triangle is a bullish sign and a fall under it a bearish one.
Now, here is the chart shared by the analyst that shows the Ascending Triangle that has appeared in Solana’s 12-hour price:
As is visible in the above graph, Solana has been trading inside the pattern for many months now and recently, it has been trying to break out of it. This attempt at a surge above the resistance line comes as SOL has been approaching the apex of the triangle.
Usually, a breakout becomes more likely to occur as the price nears the end of the pattern. This is because the consolidation range gets quite narrow around the apex. The same effect may be in play for the cryptocurrency right now.
In the event that the latest attempt does lead to a sustained bullish push, Solana may be looking at the $300 level, according to Martinez. This level is around where the 1.618 Fibonacci Extension level lies.
Fibonacci Extension lines are drawn on a price chart based on ratios from the Fibonacci series. The 1.618 ratio in particular corresponds to the famous Golden Ratio.
If Solana does end up witnessing a rally to this target of $300, then its price would have gone up by around 46% from the current value.
At the time of writing, Solana is floating around $205, up more than 5% over the last seven days.
