Trader and market analyst Peter Brandt offered valuable insights into the recent price movement of Solana (SOL), suggesting the completion of a notable chart pattern.
In particular, Brandt noticed the formation of a descending triangle pattern on Solana’s 4-hour price chart.
Chart pattern identified in the SOL and its implications
The descending triangle pattern identified by lower highs and a horizontal support line is often interpreted in technical analysis as a sign of potential continuation of the downtrend. Brandt’s recent post highlighted the completion of this pattern, drawing attention to a crucial development for SOL Traders.
Brandt’s analysis goes beyond merely identifying the pattern. It highlights the importance of validating the pattern in relation to its conclusion.
According to Brandt, the failure of a standard to fulfill its expected role carries more weight than its mere completion.
With the descending triangle pattern now confirmed for SUNThe anticipation of market participants is palpable as they await potential price movements, whether upward or downward.
A descending triangle was completed in $SOL
I am just the messenger, not the message. Remember, a pattern failure (to do what should be done under the classical rules) is more important than the completion of a pattern. pic.twitter.com/ezershgA5A
-Peter Brandt (@PeterLBrandt) April 10, 2024
Solana Network Challenges Amid Price Fluctuations
While Solana’s price performance has fluctuated over the past week, recent network challenges have added another layer of complexity to the asset’s situation. Despite a 12.7% drop in the value of SOL last week, there has been a slight increase of 4% in the last 24 hours.
However, continued network congestion has presented obstacles. Solana developers are actively addressing these issues, with efforts underway to resolve network congestion that occurred on April 15.
Mert Mumtaz, CEO of Helius Labs, a main contributor to maintaining and improving Solana, clarified that the network’s current challenges arise from the implementation of a specific protocol and not from an inherent design flaw in Solana.
Solana’s current problem isn’t a design flaw, it’s an implementation bug
now I’m realizing that some people might not understand what we were trying to say with that last week
I’ll keep it simple (intended for non-technical people)
It’s important to do this… pic.twitter.com/fNZzu9f90S
— mert | helius.dev (@0xMert_) April 8, 2024
Meanwhile, Solana’s open interest in the futures sector, a metric used in derivatives markets that refers to the total number of outstanding contracts, has been fluctuating in recent times.
Although it saw steady growth from January to April, reaching an all-time high of $2.86 billion on April 1, recent network issues led to a decline. Currency Currency data indicates that Solana Open interest has fallen to $2.4 billion since April 11, reflecting a 5% decline in just over a week.
Featured image from Unsplash, chart from TradingView