Solana Forms Bullish Cup-and-Handle Pattern, Targeting $3,800
Solana has formed a cup-and-handle pattern, indicating a potential bullish move. Analyst Ali Martinez suggests that if the pattern confirms, SOL could target $3,800.
SOL Cup and Handle Formation
- The cup indicates a consolidation phase with reduced selling pressure.
- The handle reflects a smaller downward trend before a breakout.
- Analysts derive the $3,800 target by measuring the cup depth from the breakout point.
- Success depends on factors such as spot Solana ETF approvals and institutional adoption.
Solana (SOL) Price Analysis
- SOL is currently trading at $125.25, with a 1% increase over the last 24 hours.
- The 20-day EMA resistance level is at $141.82.
- Support is near $111.48, indicated by Bollinger Bands.
- The RSI is at 37.20, suggesting potential for a bounce if prices hold or dip slightly.
- A retest of the 20-day EMA may signal a reversal; breaking above $168.20 could indicate an uptrend continuation.
Rejection of SIMD-0228
- Proposal SIMD-0228, aimed at adjusting Solana’s inflation model, failed with only 43.6% approval.
- The proposal sought to shift from a fixed to a floating inflation model based on staking rates.
- With the current inflation model unchanged, Solana continues issuing staking rewards at a fixed rate of 4%, which some argue adds sell pressure.
- This inflation rate has decreased from 8% but remains above the long-term target of 1.5%.