Solana (SOL) is currently displaying a well-known bullish cup-and-handle pattern, signaling a potential significant increase in asset price.
What is the Cup and Handle Pattern and How It Appears in Solana
The cup-and-handle pattern is a popular chart pattern which suggests the continuation of an extended bullish trend. Solana has been developing this pattern over the past two years following its 2022 growth decline. According to experts' analysis, the current price around $123 is considered a prime accumulation phase. If this level is surpassed, Solana is poised to begin a new bullish phase, suggesting a potential breakout.
Technical Indicators Indicate Breakout Attempts
Technical analysis shows Solana's price trend demonstrating previous bullishness, reaching $133.01 with an 8.66% daily increase. However, it is now showing a downtrend with a 4.97% loss at $129.19. The cup-and-handle pattern continues to support further price growth based on current market conditions. Major resistance levels for Solana are set at $150 and $180 before reaching the psychological level of $200. The potential price rise depends on overcoming these resistance points.
Assessing Solana's Current Market Position
The Money Flow Index (MFI) indicates increased buying pressure for Solana with a current level at 65.26. This suggests significant but not overbought purchasing interest. Surpassing the cup-and-handle pattern resistance could lead to substantial price increases, as observed in previous cryptocurrency market cycles. Historical trends indicate that well-formed breakouts often bring significant exponential price increases.
Solana's cup-and-handle pattern signals a potential significant price rise. Sustained overcoming of resistance points and current technical indicators support the likelihood of this scenario.
