Analyst Predicts Solana Could Surge 1,800% to $4,000 Soon
Recent market movements over the last 48 hours have generated bullish discussions around cryptocurrencies, particularly highlighting Solana. Analyst Ali Martinez predicts a potential 1,800% price increase for Solana, projecting it could reach $4,000 soon.
Martinez shared insights on social media platform X, discussing a developing "cup and handle" chart pattern that indicates a significant bullish breakout for Solana. His analysis is supported by charting expert Thomas N. Bulkowski.
Solana's Road To $4,000
Martinez's forecast is based on Solana's monthly price action, suggesting it resembles a cup and handle formation. This pattern encompasses the 2022 bear market, 2023 consolidation, and anticipated 2024 bull market.
The "cup" formed during 2022 to early 2024, culminating in Solana breaking above its resistance trendline. The "handle" developed as Solana fluctuated around the $200 mark throughout 2024, leading to a breakout resulting in a new all-time high of $263 in November.
As illustrated in the chart below, the cup and handle appears to be completed, with only the extent of Solana's upward movement remaining to be seen. Utilizing the Fibonacci extension from the 2022 low of $9.96, Martinez estimates a target near the 2.00 Fib extension level, positioning it around $4,000.
Understanding The Cup And Handle: A Proven Bullish Formation
The cup and handle pattern is a recognized technical indicator linked to bullish market trends. It features a rounded "cup" representing consolidation and recovery, followed by a smaller "handle," which indicates a brief consolidation before a breakout.
According to Thomas N. Bulkowski, referenced by Martinez, the cup-and-handle ranks as the third most effective bullish pattern, with a 61% probability of achieving its projected target. This pattern's odds are significant considering the volatility of cryptocurrencies.
Currently, Solana trades at $215, reflecting a 3% gain in the past 24 hours and a 16% increase over the past week. This rise corresponds with a 16% surge in trading volume in the last 24 hours.
If Solana reaches the projected $4,000, it would represent an approximate 1,800% return from its current price.
Featured image from Pexels, chart from TradingView