Solana Breaks Out: $213 Target in Sight

Solana (SOL) has recently experienced a significant shift in its market dynamics, breaking out of a descending parallel channel that had dominated its price action for several weeks. This breakout, as highlighted by Ali Martinez (@ali_charts), suggests a potential climb for the token towards $213.

The four-hour chart, spanning from January to early March, illustrates a steadily declining pattern where price repeatedly tested and respected both the upper and lower boundaries of the channel. However, the latest bullish push propelled SOL beyond the channel’s resistance, indicating a change in market sentiment.

The descending parallel channel is visually evident from a series of lower highs and lower lows, forming a consistent downward slope. Each brief recovery in previous weeks failed to clear the channel’s midline, reinforcing bearish pressure. However, once SOL’s price managed to rise above this midline, bullish momentum began to build, culminating in a decisive move through the upper boundary. This kind of channel breakout often suggests that sellers have been exhausted, allowing buyers to take control of the market.

Notably, the breakout comes with two major catalysts for Solana. First, the massive Solana unlock by the FTX estate is now complete (March 1). Second, US President Donald Trump announced the inclusion of Bitcoin, Ethereum, XRP, Cardano, and Solana in the United States’ Strategic Crypto Reserve.

One of the most critical elements in Martinez’s forecast is the $213 target, which is derived from the channel’s height from the breakout point in combination with the 0.382 Fibonacci retracement level. Currently, in the aftermath of a breakout, a retest of the broken resistance is taking place, aiming to turn it into support. The $160-165 zone is the area where buyers might attempt to defend the token’s new uptrend.

To the upside, the key Fibonacci retracement levels above Solana’s current price of $170.19 are $174.11 (0.618), $192.62 (0.5), $213.11 (0.382), and $241.50 (0.236), with the full retracement level at $295.60 (0.0) serving as the ultimate bull