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The price of Solana is currently at a large supply area after the latter dropped in the last 48 hours spanning the entire crypto landscape. Notably, technical analysis suggests that Solana’s price is at the way to the big break that will see both its price and market value increase by more than 1,700% in the near future.
This analysis is highlighted by the design of the cup and handles that have been in play for two years. In accordance with Solana price analysis shared on social media X by crypto analyst Ali Martinez, the bullish cup and handle pattern on Solana’s chart points to an unprecedented rally of $4,000.
Cup And Handle Pattern Signals Bullish Momentum
The cup and handle pattern is a classic technical analysis formation that is often associated with strong bullish breakouts. This pattern, seen below a circle (cup) followed by a small dip (handle), is considered one of the most reliable indicators in technical trading.
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In the case of Solana, the development of this pattern has been active since 2022 through different market cycles. The cup phase began to form when the 2022 bear market began and was extended throughout the ongoing decline. This period also includes a consolidation phase in early 2023 and a rally that occurs in the second half of the year. Together, these movements formed a round bottom of the cup, where the recent rally was highlighted by a break above five consecutive Fib extension levels.
Interestingly, Martinez’s analysis shows that Solana is currently in the catch-up phase of the last eight months. As it stands, recent price action has seen the price of the Solana look above the cup neck and handle pattern, reaching a peak the highest price is 263 US dollars on November 23. However, the price of Solana has been highlighted by a correction phase since reaching this high, with a low price of $ 205 in the last 24 hours.
Solana Price Results
According to technical analysis, the recent high of November 23 coincides with the Fibonacci extension level of 1.00 at the 2022 bear market low of $8, which serves as the lowest point in the cup and handle pattern.
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However, subsequent corrections from above saw the price of Solana re-evaluating the relaxation level of the cup neckline and pattern handle. Such reevaluations are a common occurrence in cryptocurrency markets, especially after breaking through long-term resistance levels. With this in mind, Martinez predicted a jump in the neck and a resumption of the uptrend.
Martinez’s forecast envisions a break above the next four Fib extension levels up to the 1.786 Fib extension. If this trend were to play out like this, it would drive Solana’s price beyond many psychological limits, eventually surpassing $4,000 at the extension level of 1.786., which represents a 1,700% increase from Solana’s current price.
At the time of writing, Solana is trading at $219.
The featured image was created with Dall.E, a chart from Tradingview.com
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