Solana price is currently A Large supply zone After recent Decline in the last 48 hours which cuts across the entire crypto landscape. In particular, technical analysis suggests that Solana is on the price Way to a massive breakout Which will increase both its price and market cap by more than 1,700% in the near future.
This analysis is highlighted by a cup and handle formation that has been in place for two years. Accordingly Solana price analysis Shared by crypto analyst Ali Martinez on social media platform X, a bullish cup and handle pattern on Solana’s chart is pointing to an unprecedented $4,000 rally.
Cup and handle pattern signals bullish momentum
The cup and handle pattern is a classic technical analysis formation that is often associated with a strong bullish breakout. This pattern, characterized by a round bottom (cup) and a short dip (handle), is considered one of the most reliable indicators in technical trading.
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In Solna’s case, the evolution of this pattern is in action through various market cycles from 2022. The cup phase began to take shape during the beginning of the 2022 bear market and continued throughout the sustained decline. This period also includes the consolidation phase in early 2023 and the rally in the second half of the year. Together, these movements formed a round bottom of the cup, with the subsequent rally highlighted by a break above five consecutive fib extension levels.
Interestingly, Martinez’s analysis indicates that Solana is currently in the handle phase for the past eight or so months. As it stands, recent price action has seen Solana price above the neck of the cup and handle pattern, ending The recent high of $263 On November 23. However, Solana price has been highlighted by a correction phase after reaching this all-time high, with a low of $205 in the last 24 hours.
Implications for Solna price
According to technical analysis, the recent high on November 23 coincides with the 1.00 Fibonacci extension level when the $8 low is drawn from the 2022 bear market, which serves as the lowest point in the cup and handle pattern. does
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However, that improved From the highest time Solana has seen the price retest the breakout level of the neckline for the cup and handle pattern. Such retesting is a common occurrence in cryptocurrency markets, especially after breaking long-standing resistance levels. With this in mind, Martinez predicts a bounce at the neckline 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 trajectory continues, it will push Solana’s price above several psychological thresholds, eventually crossing $4,000 at the 1.786 extension level, representing a 1,700% upside from Solana’s current price.
At the time of writing, Solana is trading at $219.
Featured image created with Dall.E, chart from Tradingview.com
