Crypto traders are closely scrutinizing Solana’s SOL token, focusing on its prolonged triangular price consolidation phase as a potential harbinger of market movements, according to insights from analysts at Fairlead Strategies.

Earlier this year, SOL surged nearly twofold to exceed $200, buoyed by the debut of spot bitcoin ETFs in the U.S., which stimulated broader market demand. However, momentum has waned since then, with retracements finding support around $120 and subsequent price rebounds becoming incrementally subdued.

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This phase has formed what analysts term a “descending triangle pattern,” characterized by a downward-sloping trendline indicating lower highs, juxtaposed with a horizontal support line signaling robust stability. This pattern typically denotes prevailing seller influence, heightening anticipation for a breakout that could trigger renewed bullish momentum.

“A breakout would signify a continuation of the overarching uptrend, potentially encountering resistance around $202. Initial support for the triangle pattern is observed near $132,” noted analysts from Fairlead Strategies in a client advisory on Monday.

“We maintain a neutral stance pending confirmation of a breakout,” they added.

As of the latest update, Solana was trading at $155, based on CoinDesk data, underscoring ongoing market volatility and the significance of impending pattern developments for strategic trading decisions.