The cost of Solana shares is in A large supply zone after recently has fallen in the last 48 hours which cut across the entire crypto landscape. In particular, technical analysis indicates that Solana's price is on the way to big break that would see both its price and market cap increase by more than 1,700% in the near future.
This analysis is highlighted by a cup and handle shape that has been in play for over two years. according to Solana stock price history shared on the X social media platform by crypto analyst Ali Martinez, a bullish cup and handle pattern on Solana's chart points to an unprecedented rally to $4,000.
Bullish Momentum Cup and Handle Pattern Indicators
The cup and handle pattern is a classic technical analysis shape often associated with a strong bullish breakout. This pattern, characterized by a round bottom (the cup) followed by a smaller dip (the hand), is considered one of the most reliable indicators in technical trading.
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As for Solana, the development of this pattern has been working since 2022 through various market cycles. The cup level began to take shape at the beginning of the 2022 bear market and extended throughout the entire ongoing decline. This period also covers the consolidation phase in early 2023 and the rally that took place in the second half of the year. Together, these movements formed a round bottom of the cup, with the last rally marked by a break above five consecutive Fib expansion levels.
Interestingly, Martinez's analysis indicates that Solana is currently in a treatment phase for the last eight months or so. As it stands, recent price action has seen the price of Solana look above the neck of the cup and handle pattern, ending with the a maximum of $263 on November 23rd.
Effect on the price of Solana
According to technical analysis, the recent all-time high on November 23 coincides with the 1.00 Fibonacci extension level when drawn from the 2022 bear market low of $8, which is the lowest point in a cup and handle pattern.
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However, the correction that followed from the highest level ever has seen Solana price retest the breakout level for the cup and handle pattern. Such a retest is very common in cryptocurrency markets, especially after breaking through long-term resistance levels. With this in mind, Martinez expected a kick to the neck and a resumption of the uptrend.
Martinez's forecast sees a break above the next four Fib extension levels up to the 1.786 Fib extension. If this path were to play out in this way, it would drive Solana's price above several psychological thresholds, eventually crossing $4,000 at the 1.786 expansion level. , representing a 1,700% increase from Solana's current price.
At the time of writing, Solana is trading at $219.
Featured image created by Dall.E, chart from Tradingview.com
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