Solana Price At $4,000? Cup And Handle Pattern Shows Why This Is Possible
Solana price is currently at large supply area after recent dropped in the past 48 hours Across the entire crypto space. Notably, technical analysis suggests that Solana price is at The way to massive breakthroughs This will cause its price and market capitalization to surge by more than 1,700% in the near future.
This analysis focuses on the cup-and-handle formation that has been in use for more than two years. according to Solana Price Analysis Cryptocurrency analyst Ali Martinez shared on social media platform
Cup and handle pattern indicates bullish momentum
The cup-and-handle pattern is a classic technical analysis pattern often associated with strong bullish breakouts. This pattern is characterized by a rounded bottom (cup) followed by a smaller depression (handle) and is considered one of the more reliable indicators in technical trading.
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In the case of Solana, the development of this model has been going through different market cycles since 2022. The cup phase begins to form at the start of the 2022 bear market and continues throughout the ongoing downtrend. This period also covers the consolidation phase in early 2023 and the rebound that occurred in the second half of the year. Together, these moves formed a cup-shaped round bottom, with the latter rebound highlighted by five consecutive Fibonacci extension level breakouts.
Interestingly, Martinez’s analysis shows that Solana has been in the processing phase for the past eight months or so. As it stands, recent price action suggests that Solana price rose above the neckline of the cup-and-handle pattern, eventually ending in Recent all-time high of $263 November 23rd. However, since reaching its all-time high, Solana price has been in a correction phase, falling to a low of $205 in the past 24 hours.
Impact on Solana Price
According to technical analysis, the recent all-time high on November 23 is consistent with the 1.00 Fibonacci extension level derived from the 2022 bear market low of $8, which is the lowest point of the cup and handle pattern.
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However, subsequent revisions since all time high Solana price has been seen retesting the neckline breakout level of the cup-and-handle pattern. Such retests are common in cryptocurrency markets, especially after breaking out of long-term resistance levels. With this in mind, Martinez predicts a rebound from the neckline and a resumption of the uptrend.
Martinez’s forecast predicts a breakout of the next four Fibonacci extension levels until the 1.786 Fibonacci extension. If this trajectory develops this way, it will push Solana price past multiple psychological thresholds, eventually breaking through $4,000 at the 1.786 extension level, a 1,700% increase from Solana’s current price.
As of this writing, Solana is trading at $219.
Featured image created using Dall.E, chart from Tradingview.com
