Solana Shows a Bullish ‘Cup-and-Handle’ Pattern, Hinting at a Strong Rally

• Solana’s cup-and-handle pattern suggests a possible breakout, targeting $403 if resistance at $206 is cleared.
• SOL price consolidates between $150-$200, with a strong breakout above $206 signaling a potential 100% gain.
• RSI trends lean bullish, with SOL not yet overbought, leaving room for further upside if volume supports the breakout.

Solana (SOL) has formed a promising bullish ‘cup-and-handle’ pattern, suggesting potential upward momentum. The pattern indicates a market consolidation, followed by a possible breakout, giving SOL the opportunity for major price increases. With a key resistance at $206 a break could push the price to new heights.

Cup and Handle: A Clear Bullish Signal

The ‘cup’ portion of this pattern started in late 2021, as SOL peaked near $206 and gradually declined, hitting a low of $9.20 by mid-2022. This rounded base shows the recovery phase, marked by consistent higher lows into 2024. 

Following this, SOL has been consolidating in a narrow range between $150 and $200, forming the ‘handle.’ The pattern suggests that a breakout above the $206 resistance would confirm a bullish continuation.

If the breakout occurs, the target for the cup-and-handle pattern is calculated by measuring the depth from $206 to $9.20, providing a potential price target near $403. This rise hinges on a strong breakout above the resistance level.

Key Support and Resistance Levels

Currently, SOL faces strong resistance at $206, which coincides with the top of the cup formation. A decisive move above this level could propel the price to $403. However, if the price fails to break through, it could remain stuck in consolidation within the $150-$200 range. Notably, support at $150 remains crucial, while a breakdown below this range could lead to a drop toward $9.20, the lowest point during the bear phase.

Volume and RSI Trends

The volume trends during this pattern support the bullish outlook. After heavy selling pressure in 2021-2022, volume has picked up as SOL recovered. During the handle phase, volume has decreased, which is typical as traders wait for a breakout. The Relative Strength Index (RSI), currently at 57, leans toward bullish momentum but is not yet overbought, leaving room for further upside.