As Solana (SOL) breaks out of a multi‑week pattern, some market observers suggest a retest of a key resistance level could be on the horizon. Nonetheless, they also warned that the next leg up could be short‑lived if momentum fails to hold.
Solana Breakout Targets Key ResistanceAmid today’s surge, analyst Ali Martinez highlighted that Solana was breaking out of an eight-week symmetrical triangle formation, which could lead to a rally toward the local range’s upper boundary.
As a result, the analyst affirmed that a big move would happen sooner than later, but the direction “will entirely depend on which side breaks first. It won’t be a move to fade (…). Likely to see at least a 20-30% leg following the break of this compression.”
SOL To Rally Before Next Dump?He explained that “on the higher timeframe, there is no sign whatsoever that we have a meaningful low in place,” and that “the upside reaction from the February low was just too weak. And the structure that’s even more important does not currently support a long-term rally.”
Nonetheless, he considers that “from there, there’s a good chance of going lower, possibly either in a fifth wave down to complete a larger correction in a so-called wave four, or like Bitcoin, the expectation is a more meaningful correction into the mid $30 region.”
“So, the market might just need to move up a little bit to complete this correction. Make the crowd bullish again so that the new sellers can come in,” he concluded.
