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Solana price is currently in a massive supply zone after recent declines across the crypto industry over the past 48 hours. Notably, technical analysis suggests Solana price is headed for a massive breakout, with both price and market cap likely to rise more than 1,700% in the near future.
This analysis is highlighted by the cup and handle configuration, which has been in use for over two years. A bullish cup-and-handle pattern on Solana’s chart points to an unprecedented rally to $4,000, according to a price analysis of Solana shared by crypto analyst Ali Martinez on social media platform
Cup and handle pattern suggests bullish momentum
The cup and handle pattern is a classic technical analysis formation often associated with strong bullish breakouts. This pattern is characterized by a rounded bottom (cup) followed by a small dip (handle) and is considered one of the more reliable indicators in technical trading.
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In the case of Solana, this pattern of development has been carried out through various market cycles since 2022. The cup phase began to take shape at the start of the 2022 bear market and spread across a sustained downtrend. This period also includes the consolidation phase in early 2023 and the upturn that occurred in the second half of the year. Together these movements formed the rounded bottom of the cup, with the latter rise highlighted by breaks above five consecutive Fib Extension levels.
Interestingly, Martinez's analysis shows that Solana has currently been in the handle phase for the past eight months or so. As it stands, recent price trends have seen Solana's price rise above the neckline of the cup and handle pattern, culminating at a recent high of $263 on November 23rd. However, Solana's price has since been accentuated by a correction phase. The lowest price in the last 24 hours was $205, reaching this all-time high.
Impact on Solana price
According to technical analysis, the recent high on November 23rd matches the 1.00 Fibonacci extension level when subtracted from the 2022 bear market low of $8, which is the lowest point of the cup-and-handle pattern.
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However, with the correction that has continued since the all-time high, Solana price is retesting the neckline breakout level of the cup and handle pattern. Such retests are common in cryptocurrency markets, especially after breaking through long-standing resistance levels. With this in mind, Martinez predicted a rebound at the neckline and a resumption of the uptrend.
Source: X
Martinez's predictions assume that the next four Fib Extension levels will be exceeded up to the Fib Extension level of 1.786. If this trajectory plays out this way, Solana's price will cross multiple psychological thresholds and eventually cross $4,000 at the 1.786 extension level, representing a 1,700% upside from Solana's current price. Masu.
As of this writing, Solana is priced at $219.
SOL price rebounds from low | Source: SOLUSDT on Tradingview.com
Featured image created by Dall.E, chart on Tradingview.com
