Solana (SOL) is attempting to reclaim a strong resistance zone for the fourth time, which has led some investors to suggest that the rally won\u2019t last long. Nonetheless, on-chain data suggests that SOL\u2019s next leg up could be starting.<\/p>\n
On Thursday, Solana hit a six-month high of $216 after breaking out of one of its most crucial resistance zones. The cryptocurrency bounced 16% from Monday\u2019s lows and reclaimed the $200 barrier as support on Wednesday, closing the day above this area.<\/p>\n
SOL briefly reclaimed this level during the early August breakout, but the recent market corrections<\/a> dragged its price to the $175-$195 area. Amid Thursday\u2019s rally, market watcher Daan Crypto Trades highlighted its performance, asserting that it is \u201cat an interesting spot.\u201d<\/p>\n The trader explained that Solana is trading in a multi-month rising wedge pattern, currently nearing the resistance level that has held over the months. Notably, the cryptocurrency has been rejected from the pattern\u2019s upper boundary multiple times since July, retesting the ascending support line on each occasion.<\/p>\n Supporting SOL\u2019s case, Daan argued that it has \u201cbeen strong on the back of treasury vehicles being spun up and potential upcoming buying + frontrunning,\u201d noting that \u201crising wedges are generally leaning bearish but in bull markets it\u2019s nothing new for these to break towards the upside instead.\u201d Based on this and the cryptocurrency\u2019s recent performance, he forecasted that it would reach higher levels later this year.<\/p>\n Similarly, analyst Ali Martinez pointed<\/a> out a six-month ascending triangle pattern on the altcoin\u2019s chart, which targets the $360 area. Solana retested the pattern\u2019s resistance three times over the past month and a half, but ultimately failed to turn the $205-$207 zone into support.<\/p>\n As the altcoin pushed past the $210 mark, the analyst raised the question of whether the ongoing breakout attempt will be successful or if SOL\u2019s rally would be short-lived for the fourth time.<\/p>\n Martinez shared multiple technical indicators that suggest Solana could finally break out of this pattern and aim for the long-awaited $300 barrier. The analyst explained that the backdrop of social sentiment and on-chain positioning differentiate the current price move from the previous attempts.<\/p>\nFourth Time\u2019s The Charm?<\/h2>\n