Solana Price Could Surge to $4,000 Amid Bullish Pattern
The Solana price is currently in a massive supply zone following declines across the crypto market in the past 48 hours. Technical analysis indicates that Solana is poised for a breakout, potentially increasing its price and market cap by over 1,700% soon.
A cup and handle formation has been developing for over two years. Crypto analyst Ali Martinez reports that this pattern suggests a possible rally to $4,000.
Cup And Handle Pattern Signals Bullish Momentum
The cup and handle pattern is a recognized technical analysis formation indicating strong bullish trends. It consists of a rounded bottom (the cup) followed by a smaller dip (the handle), considered a reliable trading indicator.
For Solana, the cup phase started during the 2022 bear market and continued through various market cycles, including a consolidation phase in early 2023 and a subsequent rally. These movements formed the rounded bottom, with a break above five successive Fibonacci extension levels marking the latter rally.
Martinez notes that Solana has been in the handle phase for about eight months. Recent price action saw Solana surpass the neckline of the cup and handle pattern, achieving an all-time high of $263 on November 23. However, it has since corrected to a low of $205 within 24 hours.
Implications For Solana Price
The recent all-time high aligns with the 1.00 Fibonacci extension level from the 2022 bear market low of $8, the lowest point of the cup and handle pattern. The subsequent correction has led Solana to retest the breakout level of the neckline, a common occurrence after breaking resistance levels. Martinez predicts a rebound at this neckline, resuming the uptrend.
Martinez anticipates a break above the next four Fibonacci extension levels, reaching the 1.786 level, which would push the Solana price beyond $4,000, representing a 1,700% increase from its current trading price of $219.
