Originally published on: October 21, 2024
Solana, often referred to as the “Ethereum killer,” could see a remarkable surge of over 2,000% in the coming months, according to promising chart technicals.
Having already surged by more than 2,000% since hitting a low of $10 in November 2022, Solana’s price movements have formed a cup-and-handle pattern on the weekly chart, as highlighted by expert analyst Peter Brandt.
A cup-and-handle pattern typically signifies a U-shaped recovery, resembling a cup, followed by a consolidation phase that looks like a handle. This period of consolidation indicates hesitation among traders as they assess the likelihood of a continued upward trend. Lately, SOL’s price has been consolidating within the $100-200 range since March 2024.
According to technical analysis principles, a cup-and-handle pattern usually resolves when the price breaks above its common neckline resistance, in Solana’s case at $205, potentially leading to a surge equivalent to the distance between the cup’s trough and the neckline.
This breakout scenario puts Solana’s target price for 2025-2026 at around $4,500, representing a substantial increase of over 2,000% from current levels.
While the cup-and-handle pattern shows strong potential, it’s essential to note that historical data indicates that not all setups reach their projected targets. Past instances have shown that only 61% of cup-and-handle trades in the stock market achieved the expected results.
Further optimistic signs for Solana emerge from expectations of an upcoming altcoin season following Bitcoin halving events. As observed in previous halvings, the altcoin market has experienced significant growth, with Solana’s price surging in tandem with this trend.
Traders often turn their focus to altcoins after Bitcoin rallies, seeking higher percentage gains. Altcoins, characterized by smaller market cap assets, are known for their volatility and potential for significant returns during bullish market phases.
This article serves as informational content and does not provide investment advice. Readers are encouraged to conduct their research and due diligence before making any financial decisions. Subscribe to our Markets Outlook newsletter for more insights on investment opportunities and trading strategies.