Originally published on: October 21, 2024
Solana (SOL) enthusiasts have reason to be excited as technical analysis suggests the altcoin could surge by over 2,000% in the near future.
Known as the “Ethereum killer,” SOL has already seen impressive gains of more than 2,000% since hitting a low of around $10 in November 2022. Renowned analyst Peter Brandt has identified a cup-and-handle pattern forming on the weekly chart, indicating a possible bullish breakout.
The cup-and-handle pattern is characterized by a U-shaped recovery, resembling a cup, followed by a period of consolidation known as the handle. This pattern often signifies a moment of indecision among traders as they assess whether the upward trend will continue. Recent market psychology has shown SOL consolidating in the $100-200 range since March 2024.
According to technical analysis principles, the cup-and-handle pattern typically resolves when the price breaks above a common neckline resistance, which, in SOL’s case, is around $205. If the pattern plays out as expected, SOL could reach a target price of $4,500, representing a staggering 2,000% increase from current levels.
Although it’s crucial to consider historical probabilities when interpreting chart patterns, the potential for a significant rally in SOL remains high. Additionally, altcoin enthusiasts are anticipating a potential altcoin season following Bitcoin halving events, which historically boost altcoin prices.
As Bitcoin rallies and gains become limited, traders often shift their focus to altcoins, which can offer higher returns during bullish phases. While every investment carries risk, the cup-and-handle pattern on SOL’s chart suggests a promising future for the altcoin.
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