Solana Price Prediction: A Bullish Cup-and-Handle Pattern Emerges
Solana (SOL) price has recently experienced a significant decline, falling nearly 25% from its recent high of $253 to a low of $190. However, buyers stepped in to take advantage of the decline, and the price has since bounced back, showing strength. Despite the bounce, the recovery rally failed to reclaim the previous high, making a lower high near $237 and indicating fading short-term bullish momentum.
However, the medium-term sentiment remains constructive, with Solana price holding above the 20-day Simple Moving Average (SMA) of around $220 and currently trading at around $222. Furthermore, the price continues to respect the ascending channel on the daily chart, as shown in the image below.
Source: TradingView
A closer look at the monthly chart reveals a potential cup-and-handle pattern, a bullish setup that could mark the start of a new macro bullish trend for SOL. The breakout of the pattern closely aligns with the 1.618 Fibonacci extension level, located around $425. This target is further supported by the monthly Moving Average Convergence Divergence (MACD) indicator, which has just flashed a golden cross, suggesting a possible shift in long-term momentum from bearish to bullish.
Technical Analysis: A Closer Look at the Cup-and-Handle Pattern
The cup-and-handle pattern is a technical analysis chart pattern that consists of a rounded bottom (the “cup”) followed by a smaller rally and a pullback (the “handle”). This pattern is often seen as a bullish reversal pattern, indicating a potential breakout to the upside. In the case of Solana, the cup-and-handle pattern on the monthly chart suggests a possible breakout towards the $425 target.
Source: @TheCryptoLark
While the short-term target remains around $253, the possibility of a much larger breakout cannot be ruled out, especially if macroeconomic conditions align. As the monthly MACD continues to flash a golden cross, it strengthens the case for a move towards the $425 target. For more information on Solana’s price prediction and analysis, visit https://crypto.news/solana-price-eyes-425-as-monthly-chart-flashes-bullish-pattern/
