Solana’s price lost about 10% of its value during the recent market downturn, which is similar to the declines seen in DOGE or Ethereum.
Popular cryptocurrency analyst Ali Martinez posted a viral Solana chart today, sharing insights into potential future SOL price movements.
Solana price analysis
SOL price is currently forming a symmetrical triangle pattern on the 4-hour time frame. This pattern arises from converging trend lines – a falling resistance line forming the upper border and a rising support line forming the lower border. As Solana price approaches the top of the triangle, we are seeing typical consolidation behavior as volatility narrows.
Martinez highlights two important price levels in his analysis: resistance at $214 and support at $183. Upper resistance corresponds to the 0.618 Fibonacci retracement level, while support is located just above the 0.236 Fibonacci retracement level. According to Martinez, a breakout above $214 could lead to a significant 40% upside, while a breakout below $183 could lead to a 40% drop.
#Solana $ sol It is united within a symmetrical triangle! A break above $214 or below $183 could spark a 40% move. pic.twitter.com/brilMiu3M9
– Ali (@ali_charts) January 12, 2025
What’s next for Solana?
The symmetrical triangle indicates that Solana is approaching a decisive moment. If SOL breaks above $214, the price could target the 0.786 Fibonacci level at $234.97, potentially extending to around $300 (representing an expected 40% upside). Conversely, a drop below $183 could see SOL test lower support levels, with a 0% Fibonacci retracement at $155 and perhaps an extension towards $110 (corresponding to a 40% bearish scenario).
SOL is currently trading at $186.28, located near the lower border of the triangle near the 0.382 Fibonacci level, making the support at $183 particularly important. The market appears to be waiting for a clear trend catalyst, with lower volume typical in these consolidation phases.
Fibonacci retracement levels Providing additional context, $214.96, $201.97, and $189.76 act as potential stops during any price movements. These levels often act as short-term support or resistance areas, helping traders identify potential market reactions.
Read also: Solana (SOL) ‘Confident’ Expert Could Hit $400 in This Course – Here’s Why
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