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ToggleSOL's price is forming a Cup and Handle chart pattern - a classic technical pattern with a potential target of $6,300. In the past 30 days, Solana (SOL) has grown strongly by 34%, reaching a five-month high of $193 on Monday.
Currently, SOL's price remains about 35% below its all-time high of $295. However, many analysts believe that SOL is approaching a price discovery phase, where growth potential could be fully unlocked if key resistance levels are broken.
Expectations for Solana's Price Surge
SOL's price has increased by over 2,400% from its cycle bottom around $10 in November 2022. Throughout this impressive recovery, SOL's price chart has formed a Cup and Handle pattern across multiple timeframes - a technical structure typically signaling continued upward trend.
Cryptocurrency investor Robert Mercer recently shared a chart showing SOL is approaching a breakout zone from this pattern, indicating the possibility of a strong price increase if the pattern is confirmed.
Analyst Mister Crypto commented on Solana's weekly chart: "A classic cup and handle pattern is forming on $SOL", emphasizing: "I am very optimistic at this price level." Meanwhile, Trader Tardigrade - a famous cryptocurrency analyst - also points out that Solana has formed a Cup and Handle pattern on a two-month chart over the past four years, with a potential price target of up to $4,800.
On the monthly chart, SOL's price has risen above the "handle" of the Cup and Handle pattern at the $155 zone. This pattern will be fully confirmed when the price breaks through the important resistance at the neckline around $250.
If this occurs, the price target will be determined by the distance from the cup's bottom to the neckline, pushing SOL's potential target in the 2025-2026 period to around $6,300, representing an increase of over 3,000% from the current price. However, it's important to note that not all Cup and Handle patterns lead to a complete price surge. According to a study by veteran technical analysis expert Thomas Bulkowski, only about 61% of these patterns achieve their maximum projected price target.
Strong Network Activity Fueling SOL's Price Momentum
Solid on-chain indicators are showing that the Solana ecosystem maintains a high level of activity, laying the foundation for SOL's potential parabolic price increase in the coming weeks. Specifically, the number of daily active addresses has increased by 9% in just 24 hours - reflecting active user participation. Meanwhile, according to data from Nansen, daily trading volume is also recovering to levels comparable to the strong growth period early in 2024.
The Total Value Locked (TVL) on the Solana network has surged to a six-month high, reaching $10.3 billion on Monday, compared to $6.1 billion on April 8, representing an increase of over 63% in just 15 weeks, according to data from defillama. With this impressive growth, Solana currently holds the second-largest blockchain by TVL, accounting for 6.28% of the total market share. Ethereum still leads with an overwhelming nearly 68%, approximately ten times the size of Solana.
This article does not contain investment advice or recommendations. Each investment and trading decision carries risks, and readers should conduct their own research before making a decision.
