The Solana price is up 30% this week, now trading around $242. This means that 2024’s yearly high of around $257 is not far away now. Crypto analyst Ali Martinez predicts that the SOL price rally is far from over.
Solana Price Forecast
A closer look at Martinez’s analysis reveals a classic cup-and-handle pattern forming on the SOL price chart. The pattern started taking shape with a peak in late 2021 or early 2022, followed by a decline and gradual recovery that formed the “cup” portion. A smaller consolidation period near the resistance level created the “handle,” completing this bullish reversal structure.
The significant breakout occurred above the $220-$240 resistance zone, confirming the bullish bias. According to traditional technical analysis, the measured move for a cup-and-handle breakout typically equals the depth of the cup added to the breakout level. In SOL’s case, with the cup ranging from approximately $9 to $220, this projects a potential target of around $4,700.
#Solana $SOL has broken out of a cup-and-handle pattern, signaling a potential upside target of $4,700! pic.twitter.com/CHgpw0hcwh
— Ali (@ali_charts) January 18, 2025
Current market dynamics show strong support levels at $220, which previously acted as resistance before the breakout. Additional support exists around $140, with major historical support in the $90-$120 range. The overall trend remains bullish, with momentum building after the bottom of the cup formation.
While the technical outlook appears promising, traders should note that maintaining the $220 support level is crucial for this pattern to play out. Any failure to hold above this level could lead to a return to the handle range.
It’s worth noting that while many altcoins are showing red today, SOL continues to perform well despite the recent liquidity shift toward Trump’s new meme coin on the Solana network.
Read also: Is Solana (SOL) Still a Smart Buy, or Is It Too Late?
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