Crypto analyst and trader Lark Davis, who has more than 1.4 million followers on X, has shared a new long-term chart analysis predicting that Solana could be gearing up for a massive move. In his post, Davis highlighted a clear cup and handle formation on Solana’s monthly chart and said the setup could send prices as high as $425 if it completes.
The chart shows Solana trading around $221, testing the upper neckline of the formation. The structure mirrors the 2021 cycle pattern, when SOL broke through a similar consolidation zone before rallying several hundred percent. This time, the Fibonacci extensions show the next major levels at $270, $431, and a potential top around $693 if the cycle repeats.
The 1.618 Fibonacci extension, which often serves as the main target during strong breakouts, sits right around $425 – the level Davis called out in his post. Solana would need to clear the $270 resistance to confirm the pattern and open the path toward that target.
Another key factor on the chart is the monthly MACD indicator. The MACD line has just crossed above the signal line, forming a golden cross for the first time since mid-2021. This type of crossover on high timeframes is often seen as a strong momentum signal, hinting that a new bullish phase may be starting.
Davis also pointed to the growing excitement around the upcoming Solana ETF deadline. With approval odds high and institutional interest in Solana rising, the timing could add extra fuel to the technical setup. If the ETF gets the green light while the chart pattern completes, it could amplify buying pressure and accelerate the breakout.
Right now, Solana sits just above the 0.786 Fibonacci retracement at $215. Holding this area is crucial for the bullish scenario to stay intact. A clear monthly close above $270 would likely confirm the handle breakout and validate Davis’s $425 projection.
From a long-term perspective, the setup aligns with Solana’s improving fundamentals and institutional narrative. If momentum continues to build, the combination of strong technical structure and ETF optimism could make this one of the most big moments in Solana’s market history.
Read also: Big Week for Solana – Spot SOL ETF Decision Nears
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