Crypto Traders Eyeing Solana’s SOL Token for Potential Breakout

Crypto traders are closely monitoring Solana’s SOL token for signs of a potential breakout as the digital asset continues its months-long triangular price consolidation. Analysts at Fairlead Strategies highlight the importance of tracking the pattern for clues on the next possible move.

SOL, currently ranked as the world’s fifth-largest cryptocurrency by market value, experienced a significant surge in the first quarter, reaching over $200. However, the uptrend has slowed down in recent times, with pullbacks being supported around $120 and subsequent price recoveries becoming increasingly shallow.

The price action has formed a descending triangle pattern, characterized by a downward sloping trendline indicating lower highs and a flat trendline serving as a strong support level. This pattern typically suggests seller dominance, with a breakout potentially signaling renewed upward momentum.

“A breakout would mark a bullish continuation of the long-term uptrend, with secondary resistance expected near $202. The triangle support level is currently around $132,” noted analysts at Fairlead Strategies in a recent client update.

As of the latest data from CoinDesk, Solana’s SOL token is trading at $155. The analysts maintain a neutral bias on the asset until a breakout from the triangular pattern materializes.