The course of the formation gives clues as to whether SOL will trend up or down in the coming days. However, these clues offer possible scenarios rather than a clear prediction. At this point, investors have to make conscious decisions by evaluating both technical and fundamental factors together.

Fairlead Strategies analysts suggest that this triangle formation could be a catalyst for the continuation of the bullish (bullish) trend. According to them, an upward break of the SOL price from this triangle could bring upward momentum to the market again. However, for this scenario to occur, market conditions and investor psychology must also develop positively.

SOL is the fifth largest cryptocurrency in the world in terms of market value. One of the events that marked the first quarter of 2024 was the launch of spot Bitcoin ETFs in the US for the first time. This development led to a general rise in the cryptocurrency market.

During this period, the price of SOL also received its share of this rise and almost doubled, reaching over 200 dollars. However, unfortunately, this upward momentum was not permanent. SOL price lost the uptrend and found a support level near $120. Afterwards, price recoveries gradually weakened.

At this point, the “descending triangle” formation, which is frequently encountered in technical analysis, emerged. This pattern consists of a downward sloping trendline and a horizontal trendline. The downward sloping trend line indicates that the SOL price is seeing lower highs, meaning the uptrend is gradually losing strength. The horizontal trend line indicates that the support level around $120 is strong and the selling pressure has stopped at some point. The basic meaning of this formation indicates that sellers are dominant in the market, but buyers have not given up completely.

If the SOL price breaks upwards from this triangle, this will give the market upward momentum again. A secondary resistance level could form near $202, as predicted by Fairlead Strategies analysts. At this point, investors will have to take into account that prices may exceed this resistance level or face selling pressure at this level.

However, if an upward break does not occur, the SOL price may follow a downward trend. In this case, the region around $132, which is the support level of the formation, is of critical importance. If the price falls below this level, this may cause panic among investors and pave the way for sharper declines.

The future course of SOL price cannot be predicted by technical analysis alone. The cryptocurrency market has higher volatility compared to traditional financial markets. Therefore, investors need to closely follow fundamental factors as well as technical analysis. For example, interest rate policies of central banks, attitudes of regulators towards cryptocurrencies and the general economic outlook can also affect crypto assets such as the SOL price.