Potential Price Surge for Solana: Three-Year Cup and Handle Chart Pattern Identified
In the world of cryptocurrency, traders are keeping a close eye on Solana (SOL) as it breaks out above the resistance of $26-$33, consolidating between $115 and $285. This significant move has set the stage for higher targets now in focus, with potential long-term targets reaching as high as $1,000.
The bullish case for Solana remains valid while the asset holds above the $185-$200 range. A look at the weekly chart reveals a cup and handle pattern that has taken shape over three years, forming a rounded base between late 2021 and 2023. This pattern is reminiscent of a teapot, with the handle representing a smaller pullback.
The chart suggests a possible peak for Solana at Zone V, potentially exceeding $18,000. However, it's important to note that this is just a theoretical projection and actual prices may vary.
Trader Tardigrade's analysis adds another layer of insight to Solana's movement. His model indicates a pattern of steep expansions followed by substantial retracements in Solana's history. A separate analysis from Trader Tardigrade outlines a repeating cycle model for Solana, which could provide context for the current breakout.
CoinGecko data shows Forward Industries as Solana's largest treasury, owning 6.82 million SOL, or 1.26% of the supply. The institutional accumulation of Solana provides context as the asset approaches the $250 neckline, which is currently being tested.
Key support for Solana is seen around $185, with deeper historical support zones at $10 and $1.50. If the move continues, a potential long-term target for Solana could be $500, according to analyst Jonathan Carter's projection. Large-scale buyers, such as Forward Industries, have added to Solana's institutional participation, further bolstering its potential.
The 50-week moving average is trending higher and sits below the current price, offering a measure of support. The Relative Strength Index (RSI) is climbing near 60, suggesting momentum without entering overbought territory. This indicates that while Solana is gaining traction, it is not yet in a state of overexcitement among traders.
It's worth noting that previous rallies saw Solana top at different zones before retracing to Zone I, which acted as long-term support. This historical trend provides a sense of perspective for the current breakout and potential future movements.
As always, it's crucial for investors to conduct their own research and consider their risk tolerance when making decisions in the cryptocurrency market. The information provided here is for informational purposes only and should not be taken as financial advice.
Read also:
- Shaping India's Economic Progression: Readying the Financial System for Tomorrow
- Conflict between Ben & Jerry's co-founder and Unilever over Gaza issues leads to resignation of co-founder
- Two farmers in Zambia take legal action against two firms with Chinese connections, alleging an ecological disaster caused by their operations.
- Deepening EU-India relations despite apprehensions regarding Moscow connections
