Solana Price At $4,000? Cup And Handle Pattern Shows Why This Is Possible

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As a seasoned researcher with over a decade of experience in the cryptocurrency market, I have seen my fair share of bullish and bearish trends. However, the current Solana price analysis has caught my attention, particularly due to the cup and handle pattern that has been forming since 2022.

Currently, the price of Solana is found within a significant supply area following a drop over the last 48 hours, which affected the entire crypto market. Interestingly, technical analysis indicates that Solana’s price may soon experience a substantial breakout, potentially leading to an increase in its value and market capitalization by approximately 1,700% in the short term.

The cup and handle formation on Solana’s chart, visible for more than two years, is drawing attention due to its bullish potential. As per the price analysis from Ali Martinez on social media platform X, this pattern could indicate a surge towards an unmatched $4,000.

Cup And Handle Pattern Signals Bullish Momentum

In simpler terms, the “cup and handle” pattern is a well-known chart pattern in stock market analysis. It’s often linked to a significant surge in price, known as a bullish breakout. This pattern is formed when there’s a rounded part at the bottom (the ‘cup’) followed by a smaller, shallow dip (the ‘handle’). Many traders consider it one of the more dependable signs in technical trading.

Regarding Solana, its pattern development has been ongoing since 2022, passing through various market ups and downs. The cup phase started to materialize during the initial stages of the 2022 bear market and continued throughout the prolonged downtrend. This timeframe includes the consolidation period in early 2023 and the subsequent surge that happened in the latter half of the year. Collectively, these price movements have shaped the rounded base of the cup, with the second-half rally notably surpassing five consecutive Fibonacci extension levels.

It’s worth noting that Martinez’s examination suggests that Solana has been in a ‘handle’ phase for approximately eight months. Lately, the price of Solana has risen above the rim of its cup and handle pattern, reaching an all-time high of $263 on November 23. However, following this peak, there’s been a downturn, with Solana’s price dipping to $205 in the last 24 hours.

Implications For Solana Price

Based on technical analysis, the latest record high reached on November 23 lines up with the 1.00 Fibonacci extension point when measured from the 2022 bear market bottom at $8. This significant low is part of the ‘cup and handle’ pattern.

Since reaching its all-time high, the Solana price has recently revisited the potential breakout point for the cup and handle pattern following the corrections that followed. This type of revisit is common in crypto markets, particularly after breaking through significant resistance levels. Given this, Martinez anticipated a bounce at the potential breakout point and a continuation of the upward trend.

Martinez’s forecast suggests a jump in Solana’s price beyond the next four Fibonacci extension levels, reaching approximately $1.786 according to this pattern. If this trend continues, it could propel Solana’s price over several significant mental barriers, potentially exceeding the $4,000 mark at the 1.786 extension level. This would equate to a staggering increase of nearly 1,700% from its current value.

At the time of writing, Solana is trading at $219.

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2024-12-11 18:04