Solana (SOL) has had an upward trend in the cryptocurrency market because of the recent volatility. Following a remarkable surge earlier in 2024, SOL saw a significant decline of 13% in the past week, causing investors to speculate about future developments.
Technical expert Patel took a close look on coin’s weekly performance, and discovers a classic “Cup and Handle” pattern, a bullish indication akin to, well, a cup and its handle.
Frothy Past, Steady Handle: A Recipe For A Breakout?
Patel claims that the “cup” component of the trend extends from mid-2021 to mid-2022 and covers Solana’s strong climb and eventual drop. The current consolidation phase forms the “handle,” following the first parabolic movement in price.
For SOL bulls, the key hurdle lies in surpassing the resistance zone around $200-$225, a level that has historically acted as a psychological barrier. A successful breach of this resistance could be the first sip of a bullish resurgence.
#SOLANA $1000 Roadmap 🚀$SOL pic.twitter.com/s7KipEbDTd
— Crypto Patel (@CryptoPatel) June 22, 2024
$520 Or $1,042: Patel’s Ambitious Price Targets
Two potential medium- to long-term price targets for SOL are indicated in Patel’s analysis, both of which rise above the present resistance. The first goal, or TP1, would indicate a significant increase and retest previous highs at $520.
Patel doesn’t stop there, though. With a startling $1,042 price tag, his second objective, TP2, draws attention and suggests an extraordinarily bullish long-term outlook. But getting to these great altitudes depends on finishing the handle creation completely.
This would entail an additional period of consolidation as well as a possible retreat, which would be a necessary evil to build up steam for a strong breakout.
Can SOL Weather The Short-Term Squall?
Although Patel’s study presents a positive long-term outlook, the short-term outlook for SOL is a little more uncertain. Given that Solana is currently trading below its 100-day Simple Moving Average (SMA), the indications of the market point to a negative undercurrent. Bearish sentiment is further reinforced by the Relative Strength Index (RSI), which is trading below 50% and verging on oversold territory.
In the foreseeable future, SOL may experience a temporary decrease; several experts anticipate a drop as low as $99 or in proximity to the $118 support threshold. Nevertheless, it is not feasible to completely eliminate the possibility of a reversal. It is not possible to totally rule out the chance of a reversal, though. SOL may surpass the resistance level at $140 and advance towards $160 and $188 if the market recovers..
Investors are able to traverse the turbulent cryptocurrency market with ease thanks to a comprehensive manual that is provided by Patel’s study. Although there may be variations in the SOL over a short period of time, the long-term picture is good so long as it continues to move upward and breaks through critical resistance levels.
Featured image from Lookphotos, chart from TradingView