This Trader Makes a Shocking Solana (SOL) Price Prediction

The Solana price is up 30% this week, now trading around $242. This means that 2024's yearly high of around $257 is not far away now.

A popular crypto analyst predicts that Solana (SOL) could rally by over 1,800% this year, reaching a price of $4,700.

The pseudonymous trader, known as Ali Martinez, points out a cup-and-handle pattern forming on SOL’s price chart. The pattern started taking shape with a peak in late 2021 or early 2022, followed by a decline and gradual recovery that formed the “cup” portion. A smaller consolidation period near the resistance level created the “handle,” completing this bullish reversal structure.

“Solana $SOL has broken out of a cup-and-handle pattern, signaling a potential upside target of $4,700!” Martinez said in a tweet.

A cup-and-handle pattern is a bullish technical formation that typically consists of three main components: a “cup,” a “handle,” and a breakout. The cup is a U-shaped price movement that resembles a drinking vessel. The handle is a smaller consolidation period that occurs at the resistance level of the cup. A breakout occurs when the price breaks above the handle resistance.

According to traditional technical analysis, the measured move for a cup-and-handle breakout typically equals the depth of the cup added to the breakout level. In SOL’s case, with the cup ranging from approximately $9 to $220, this projects a potential target of around $4,700.

“Solana (SOL) is up over 30% this week, now trading around $242. This means that 2024’s yearly high of around $257 is not far away now,” the crypto analyst added.

“SOL price rally is showing no signs of slowing down just yet. In fact, one trader predicts that the second-largest layer-1 token could rally to new all-time highs in 2024.”