Why Solana Price Is Going Up?

Solana Price Forecast: Will SOL’s Cup-and-Handle Pattern Fuel a Rally?

The current state of the cryptocurrency market is far from clear as most large-cap assets such as Solana (SOL) are trading with fluctuating price action. Specifically over the past two weeks, SOL has been consolidating within the $120-$140 region as investors look for clues as to whether a breakout would be imminent or whether more consolidation could be on the horizon.

Network Adoption Reaches a New Peak

Still, the price of Solana remains stuck near $140. However, the adoption of crypto in general keeps growing. According to Ali Charts: The blockchain reached an all-time high in number of 11.09 million unique addresses of SOL recently. The adoption shows how important Solana is to the crypto community. One can possibly use it as a bullish sign to keep the price up in the long run.

Technical Analysis: Key Levels to Watch

Daily Chart Overview

Current Price: $138.54 (+4.29%)

Support Levels: $131.32 (20-day SMA), $125

Resistance Levels: $158.31 (50-day SMA), $185.29 (100-day SMA)

RSI: 49.14 (Neutral momentum)

Solana is currently trading just above its 20-day SMA ($131.32) (read: immediate support), there is quite a bit of resistance at the 50-day SMA ($158.31) and the 100-day SMA ($185.29). If it manages to break above those zones, the market can initiate a bullish reversal (SOL would then have a chance to push upward toward the huge $200 resistance level).

Source: TradingView

Bullish Signal: Cup-and-Handle Pattern Forming?

One of the most respected technical analysts, Ali Martinez, believes the alctoin is forming a Cup and Handle pattern. SOL’s resistance is currently at $200. If it does get past this resistance, Martinez says, it can definitively validate the formation, which historically has been the key to strong bullish momentum. In such a scenario, Martinez says, Solana would reach as high as $3,800. That’s an insane 1,8500% gain from current levels.

Derivatives Market Insights: Rising Trading Activity

As per Coinglass, The derivatives market has seen a 71.33% spike in trading volume reaching $6.89 billion, while open interest meanwhile increased by 9.25% to $4.94 billion. Options trading has also seen an explosive 251.63% increase with concern intensified over what next move will be.

But if we look at the liquidations, Over the past 24 hours, total liquidations reached $8.39 million, with $6.96 million in short liquidations.

Market Sentiment: Fear Among Long-Term Holders

Also, according to Ali Charts, long-term Solana holders are showing signs of fear, which I’ve generally connected to smart money accumulation (i.e. “Be greedy when others are fearful”). If we see the same pattern with the price, it’s possible institutional investors will emerge and the SOL price will rise in the coming months.

What’s Next for Solana?

Breakout above $158 – $185 resistance zone: A sustained above $185 would lead to a bullish breakout to $200 and beyond.

Failure to hold support at $130: If SOL breaks below that line we should expect further consolidation around $125- $120 before another attempt to push higher.

Long-term target: If SOL breaks $200 the cup-and-handle formation may trigger a parabolic movement to $3,800.

Solana still holds one of the strongest networks when it comes to adoption and activity on the blockchain market. While we don’t see a clear confirmation for long-term consolidation, the key technical indicators already indicate that it is not far from a well-awaited breakout. The key resistance area here would be from $158-$185 while long-term investors may find current fear levels as an opportunity to accumulate before a large rally.