Recent market price action in the past 48 hours is on has raised bullish discussions for cryptocurrencies, with property as Solana takes platform. In Solana's case, crypto analyst Ali Martinez hit the bullish nail with the recent forecast that Solana could see a staggering price increase of 1,800% and reach $4,000 very soon.
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In a post on social media platform X, Martinez pointed out that developing a “cup and treat” chart pattern, which he says signals a major bullish breakout for Solana. He supported his analysis with comments from recording expert Thomas N. Bulkowski.
Solana Road To $4,000
Martinez's take on Solana is based on the monthly timeframe for the cryptocurrency's price action. As he said, Solana's price action over the past few years seems to be looking like its cup and handle pattern. This formation cuts across the bear market of 2022, the consolidation of 2023 as well as the recovery, and the bull market of 2024.
In terms of creation time, the cup part of the pattern was created throughout 2022, 2023, and early 2024, when Solana broke above the front line for the first time. The manipulation formation was created by Solana's up and down movement around the $200 price level for most of 2024, which ended with a break out to an all-time high of $263 in November.
As can be seen in the chart below, it seems that the creation of the cup and handle is already completed, and the only thing left is to wait and see what Solana surrenders to the side up As for a price target, Martinez used the Fibonacci extension indicator, projecting it from the 2022 bear market low of $9.96. The target is around the 2.00 Fib extension level, which puts the projected target around $4,000.
Understanding the Cup and Its Treatment: A Bull-Defined Form
The cup-and-handle pattern is a classic technical indicator often associated with bullish market behavior. It includes a round “cup” that represents a period of consolidation and recovery, followed by a smaller “handle” showing a brief consolidation before a breakout.
According to Thomas N. Bulkowski, who Martinez also noted in his analysis, the cup-and-handle is the third most effective bullish pattern, with a 61% probability of achieving the projected target. Considering the unpredictable nature of cryptocurrencies, the possibilities that this pattern presents are quite unique.
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At the time of writing, Solana is trading at $215 and is up 3% and 16% in the last 24 hours and seven days, respectively. This price increase is coming along with an increase in activity, with Solana seeing a 16% increase in trading volume in the last 24 hours.
If Solana reached $4,000, it would translate into a return of around 1,800% from the current price.
Featured image from Pexels, chart from TradingView
