Top crypto analyst, Ali (@ali_charts), has spotted a cup and handle pattern on Solana’s monthly chart, suggesting SOL could reach $4,000. The projection comes amid Solana’s strong performance in the crypto market.
Moreover, the accompanying chart provided a detailed projection, blending technical analysis with Fibonacci retracement and extension levels to outline potential price targets for SOL.
What you'll learn 👉
SOL Technical Formation Suggests Major Upside
The chart analysis suggests that SOL’s price movement from mid-2021 to mid-2023 formed a rounded bottom, resembling a “cup” pattern. During this phase, the price bottomed just below the 0.236 Fibonacci retracement level at $18.19.
The subsequent horizontal consolidation phase between $120 and $260, described as the “handle,” is considered a continuation phase, setting the stage for a potential bullish breakout.
The $260 level represents a key resistance point and the neckline of the cup and handle formation. A sustained breakout above this zone, confirmed by trading volume and monthly closes, could propel SOL to higher price levels.
Fibonacci Levels and Projected Targets
Ali’s chart utilizes Fibonacci retracement and extension levels to highlight crucial support, resistance, and potential price targets. Key retracement levels such as 0.618 ($68.78) and 0.786 ($123.44) played important roles during prior price movements. The chart outlines Fibonacci extension targets at $670.43 (1.272), $2,236.35 (1.618), and $4,013.95 (1.786).
As of now, SOL trades around $219.01, within the handle consolidation range. The projected rally to $4,000 aligns with the 1.786 Fibonacci extension level, marking an 18x increase from the current price.
Read also: This Chart Explains Why the RENDER Price Could Be Ready for a Rally to $13
Current Market Dynamics and Trend Outlook
SOL’s price action reflects a clear bullish reversal since mid-2023, characterized by higher highs and higher lows. The handle consolidation suggests temporary market indecision, a common precursor to major price movements.
However, for SOL to reach the ambitious $4,000 target, analysts stress the necessity of a surge in trading volume and sustained demand.
Ali’s tweet has fueled optimism among SOL supporters while inviting skepticism from others due to the ambitious nature of the target. While technical analysis supports the possibility of such a rally, achieving this milestone hinges on favorable market conditions, including macroeconomic factors and sustained interest in Solana’s ecosystem.
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