Market analyst Ali Martinez believes Solana shares are on the verge of an 868% rally to $1,630 after breaking out of the bullish trend.
For the uninitiated, a bullish pennant pattern typically forms as a continuation pattern. It forms when there is a pause in an asset’s upward movement. For Solana, the flagpole of this bullish pennant was established during its remarkable recovery from a long downtrend in 2023.
Solana forms a bull pennant
Notably, SOL bottomed at $17.34 in September 2023 after a year of bearish momentum. However, from the $17.34 low, Solana began a strong rally that culminated in peak at $209 by March 2024This restoration made it possible to establish the height of the flagpole.
After peaking at $209, which coincided with Bitcoin’s (BTC) all-time high, SOL’s price has seen a correction as investors take profits. corrective phasewhich spilled over into this month, occurred when Bitcoin and the rest of the market pulled back. The correction formed the pennant itself.
SOL Plans 868% Growth to $1630
Consolidation of prices within the pennant was marked by reduced volatility and narrowing price action. Now, Martinez confirms that Solana has broken out of the pennant after a strong 24.93% rally last week. The rebound comes amid the latest broader market recovery.
#Solana $SOL has officially broken out of this bull pennant, suggesting a potential 900% upside ahead. pic.twitter.com/CWQdWGny0X
— Ali (@ali_charts) July 24, 2024
The break of the pennant’s upper trendline marks a shift in market sentiment. Ali Martinez expects the upcoming rally to push Solana 868% to a new all-time high of $1,630.
While the pennant breakout is a bullish signal, current market conditions are not so favorable. According to recent data, Solana price has faced some downward pressurecoinciding with a broader market downturn. Notably, Bitcoin has fallen more than 3% today, bringing down the rest of the market.
Solana is currently trading around $166.61, a significant drop of 9.70% this week alone. The Fisher Transform indicator is currently showing a negative value. Often used to identify turning points in the market, this indicator suggests that recent price action may not immediately coincide with the bullish breakout expected from the pennant.
Interestingly, Martinez warned of this pullback in his analysis three days ago. Market Watch warned On July 21, TD Sequential issued a sell signal on three Solana timeframes. It subsequently tense that the expected 868% growth will not be linear. According to him, corrections will continue.
