If a specific pattern on the chart holds true, Solana (SOL) might be poised for a historic rise. The price’s lower highs and lower lows are connected to form a falling parallel channel, which is accompanied by parallel trendlines that show a downward trend.
A stronger indicator is a breakout, which happens when the price breaks through the channel’s upper or lower boundaries. When that occurs, the price may move in that breakout’s direction very rapidly and abruptly.
On Solana’s four-hour chart, cryptocurrency expert Ali highlights a descending parallel channel that illustrates the cryptocurrency’s extremely short-term price losses. Ali says that Solana seems to be emerging from this parallel channel that is dropping. He goes on to say that SOL has a good chance of rising towards $113 if it can stay above $94.
https://x.com/ali_charts/status/1751710299982307767?s=20
If there is a descending channel, there are two possible outcomes: the descending channel would have been a continuation pattern if the move is in the direction of the prior trend. A reversal may be imminent if the advance deviates from the previous trend and the declining channel holds.
SOL is still trending upward overall. Since hitting $78.87 on January 23, SOL has been climbing gradually. On January 26, it is expected to record its fourth day of gains in a row.
In the event that Ali’s optimistic scenario comes to pass and SOL surpasses $113, it can go close to the next resistance level, $126.11, which is the level of the previous highs in December 2023.
A break over this mark might initiate a new upsurge and push the price beyond $200, which hasn’t happened since January 2022. SOL is currently trading at $97.61, down 0.37% over the past day.
Conversely, $78, which has recently functioned as a strong demand zone, is the next support level to keep an eye on if SOL prices decline. The price would drop to $67 and confirm a bearish trend if it broke below $78.
