TechFlow news, on December 24, according to CoinDesk, cryptocurrency analyst Omkar Godbole published a new analysis report indicating that SOL is currently exhibiting a "bullish throwback" technical pattern. SOL rose over 7% this week to $193, finding support at a previous resistance level connecting the March and July highs. Earlier in early November, SOL broke above a downward channel formed between March and October, then surged rapidly to $260, before pulling back last week to the breakout level.
As explained by Charles D. Kirkpatrick II, author of Technical Analysis, such throwback patterns offer latecomers a second opportunity to enter positions, with stop-loss orders placed just below the breakout point, resulting in relatively controlled risk. Throwbacks typically take a short time and involve limited retracement, yet provide favorable entry points.
Notably, Bitcoin exhibited a similar pattern in the second half of 2023, preceding a significant rally. However, if SOL fails to hold the current support level and falls back into the prior channel, the bullish setup would be invalidated.
