Solana’s Cup-and-Handle Pattern Emerges, Poised for $3,800 Upside

• Solana’s weekly chart forms a textbook cup-and-handle pattern that suggests a potential bullish breakout, with key resistance levels closely watched by traders.
• Technical indicators such as MACD and RSI support the formation’s validity, indicating emerging buying pressure and a possible upward movement in prices.
• Market sentiment remains focused on the cup-and-handle pattern, with price action near support levels and strategic resistance defining trading strategies across markets.

A recent tweet by a prominent crypto analyst Ali suggests Solana forms a textbook cup-and-handle pattern. The formation may propel SOL toward $3,800 if confirmed by market activity and technical signals.

Pattern Formation and Price Structure

Ali observes that Solana shows a classic cup-and-handle formation on the weekly timeframe. The pattern indicates a period of accumulation and a potential bullish move. The cup shape reflects a rounded bottom where buying pressure gradually returns. The handle appears as a consolidation phase that may lead to a breakout.

At the time of writing, the price of Solana nears $126 and tests a support trendline between $116 and $120. A sustained move below this support could push prices toward lower levels. Traders monitor the resistance near $210, which plays a key role in the overall structure. A move above this resistance may trigger the projected upward path.

Technical Indicators and Market Sentiment

Technical indicators further support the tweet’s perspective. The MACD shows the potential for a bullish crossover, with the MACD line nearing the signal line. A bullish crossover may boost momentum toward the next resistance zone. The histogram now turns green, which may signal reduced selling pressure.

The Relative Strength Index stands at 37.82, recovering from oversold conditions. A move above 40 or 45 could add strength to the bullish scenario. Observers note that the interplay between MACD and RSI is important. Each indicator helps assess whether the pattern will be confirmed.

Market Outlook

Ali’s tweet reflects a bullish outlook that aligns with technical observations. A confirmed breakout above $210 could mark the beginning of an upward trend. The formation may pave the way for a move toward a high target of $3,800. A breach of key resistance may invite further buying interest.

Solana’s evolving pattern and technical indicators offer a framework for potential bullish movement. Market participants watch the chart closely as the pattern unfolds and trading strategies adjust accordingly.