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Renowned trader and market analyst Peter Brandt has weighed in on Solana’s recent price action, hinting at the potential completion of a chart pattern.
Given the volatility on the market, recent price movements have raised questions about Solana’s short-term price direction, with the emergence of a descending triangle pattern catching the eye of technical analysts like Brandt.
In a recent tweet, Brandt brought attention to an intriguing development on Solana’s (SOL) four-hour price chart — the completion of a descending triangle pattern.
Descending triangles are significant in technical analysis, often signaling a continuation of a downtrend.
The descending triangle pattern is a common technical formation characterized by lower highs and a horizontal support line. In some cases, the support line might seem strong, causing the price to bounce and make a strong move up.
With the pattern now completed for SOL, according to Brandt, anticipation among market participants remains palpable as they await potential price movements either to the upside or downside.
However, Brandt’s insights delve deeper than the mere formation of the pattern. He emphasizes that the validation of this pattern holds more weight than its completion. According to the legendary trader, a pattern failure (to do what it is supposed to do under classical rules) is more important than completing the pattern itself.
At the time of writing, SOL was up 1.73% in the last 24 hours to $173, sustaining its rebound from April 10 lows of $162. On the upside, eyes will be on a break of the $184 level for a move toward $200 and beyond. On the other hand, the daily MA 50, which has held up SOL’s price since late 2023, remains a formidable support.
As Solana continues to chart its course on the cryptocurrency market, traders will closely monitor its price movements, particularly in light of the completion of the descending triangle pattern.
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