A cryptocurrency analyst has pointed out how Solana may be moving toward a sky-high main target based on a cup-and-handle breakout.<\/p>\n
In a new post<\/a> on X, analyst Ali Martinez has shared a pattern that the 1-week price of SOL has appeared to have been following during the last few years. The pattern in question is a \u201ccup and handle<\/a>\u201d from technical analysis (TA)<\/a>.<\/p>\n It\u2019s made up of two parts: a U-shaped trendline forming the \u201ccup\u201d and a downward parallel channel representing the \u201chandle.\u201d As the asset moves through the pattern, it first goes through a decline to a low, then observes a rebound back to about the same height as before the drawdown. Finally, it once again witnesses a bearish trajectory, this time one consistent with a descending channel.<\/p>\n When the price is inside the channel, the usual rules of the formation apply: the upper line acts as a resistance barrier, while the lower one provides support. A break out of the levels can imply a continuation of trend in that direction.<\/p>\n A cup and handle is generally assumed to be a bullish continuation pattern, meaning that breakouts can be considered more probable to occur in the up direction.<\/p>\n The same seems to have held true for Solana as well, as its 1-week price has just seen a surge beyond the resistance line of its multi-year cup and handle pattern.<\/p>\n As displayed in the above graph, the weekly Solana price went down and up along a cup between 2021 and 2024, but this year, it entered into the handle or downward consolidation phase.<\/p>\n After some period of stay inside the zone, the coin finally found a break away from it in July. This escape from the descending channel occurred with an upward surge, a potential sign that sustained bullish momentum may be coming for SOL, if the pattern is anything to go by.<\/p>\n As for what could be a potential target for the cryptocurrency\u2019s price, the analyst has suggested a rather bold one: $1,314.41. The target corresponds to a line from Fibonacci Extension levels.<\/p>\n