By Michael Scott
Crypto analysts predict Solana’s next move is a bullish breakout with $500 on the horizon per the Cup and Handle pattern.
While Solana (SOL) recently portrayed impressive market resilience to register a peak at $225, the cup and handle pattern in its chart signals a potential breakout. Crypto analysts downplay the slight pullback to validate a $400-$500 target.
Looking at the daily chart, the SOL sustained the bullish steam to set its peak at $222.40, reflecting a 6.20% intraday gain per CoinGecko data. Over the last 14-day run, Solana has surged by 26.4%, fueling the speculation about momentum to surpass the all-time high (ATH).
Analysts and traders attracted to Solana’s upward trajectory offer varying predictions though the targets of a new peak remain relevant.
Will Solana Sustain Bullish Momentum?
A TradingView technical analyst spotted the cup and handle pattern on SOL’s long-term charts. The pattern traces to later 2021 when Solana’s price dipped below $10 as the prolonged bear market wreaked havoc across the industry. Fortunately, the subsequent recovery witnessed in 2023 delivered the turnaround to the present levels.
The TradingView analyst observed SOL would enter the consolidation phase just after the cup formation. The phase features the descending wedge that establishes the handle.
The structure has historically portrayed sustained bullish momentum on the monthly timeframes. The analyst opines that a breakout could elevate the SOL’s price to the 400-$500 target.
Conservative Outlook in Short-Term
Although the long-term charts suggest huge gains, the short-term forecasts entertain a more cautious view. Legendary analyst Satoshi Flipper spotlights a bullish channel observable on the hourly chart.
The pattern hints that SOL could realize a further uptick to $260 a price target linked with the pennant breakout. A breakout beyond that level would see the SOL test unchartered territories to register new all-time highs.
An autonomous analyst under the pseudonym identity Bitcoin Buddha highlights SOL shows solid performance on the weekly charts to profile the current trajectory as highly bullish. The analyst observes that meme coins running on the Solana network yield over $1B in the daily trading volume. Such constitutes a bullish sign convincing to retain Solana for the current cycle.
Solid Market Confidence on Solana Network
Scrutiny into the staking metrics illustrates strong network confidence. In particular, the analytics platform Dune confirms in its recent data consistent recovery for the staked SOL. The platform is showing the token count stabilizing at 408.12 million translating to $85 billion.
The higher staking locks the SOL tokens for extended periods, thereby exempting them from circulation. Such dynamics could dull the selling pressure in the process to support price growth.
Analyst Predicts SOL to Outperform BTC
Standard Chartered’s Geoff Kendrick considers Bitcoin’s surge towards $100,000 will bolster other cryptos with Solana likely to set a new peak before year’s end. The bullish outlook entertains that tokenization could thrive as the US ushers friendlier regulatory stances.
The digital assets head had earlier anticipated pro-crypto development to predict Bitcoin’s march to $80K price was imminent. Looking ahead, the analyst considers the crypto will retain the upward trajectory with a $100,000 target easily achievable before December 27.
Kendrick indicates that the $125,000 price is the immediate level by year-end or the January 20 inauguration. Despite other crypto benefitting from Bitcoin’s rising price, Solana could emerge as the best performer.
The analyst admits a fresh peak for SOL is inevitable before the end of 2024 that will blast beyond the $260 ATH attained in November 2021. Ethereum will wait until inauguration for a breakout beyond the $4,866 ATH. Consequently, SOL will outlast the three boats at a better elevation.
Kendrick had in an earlier report suggested that the global crypto market cap could rally 300% by 2026 if the Grand Old Party (GOP) secures control of the US Congress chambers. The analyst is optimistic that tokenization, GameFi, and decentralized physical infrastructure (DePin) will reap the greatest benefit from the Trump-led administration policies.
The crypto market cap could rise from the current $3.0 trillion, if Kendrick’s projections materialize, to $10 trillion by Q4 2026. Such growth will likely usher in an innovation era and broader adoption across the mainstream segments.
Editorial credit: JOCA_PH / Shutterstock.com