Technical analyst Peter Brandt has analyzed Solana (SOL/USD) using a weekly chart and identified the final phase of compression in a rare macrostructure known as the “Cup and Handle” pattern. According to Brandt, this consolidation marks a very significant long-term formation for SOL, which currently trades at $116.29. The technical setup suggests potential for a 106% rally toward the upper limit of the structure, around $240, with the possibility of a much larger breakout if resistance levels are surpassed.
Five-year macro cycle frames Solana’s setup
Brandt’s chart spans five years of Solana’s market history. The structure begins with SOL’s all-time high in 2021, followed by a sharp decline to approximately $9 during the late-2022 crypto downturn. Recovery into 2024 highs shaped the “cup” portion, while subsequent sideways price action established the “handle,” completing a textbook technical pattern.
Technical indicators, including a 17.51 Average True Range (ATR), indicate a cyclical reduction in volatility. The amplitude of price swings has narrowed, which signals healthy position building. In parallel, the Average Directional Index (ADX) stands at 20.10, well below the 25 threshold, indicating a period without a strong directional trend. These conditions suggest the chart is coiling and could be preparing for a major move.
Brandt’s analysis points to price consolidating within the final stage of capital accumulation, with key metrics confirming reduced volatility and a pending impulse.
Critical levels: Key support and resistance for Solana
Based on logarithmic technical analysis, the 106% upside projection from $116.29 to the historical resistance near $240 marks the first stage. The true potential only materializes if SOL can decisively break and hold above this upper boundary. In prior market cycles, particularly in assets like gold, the conclusion of multi-year patterns of this type has sometimes triggered powerful uptrends matching the total depth of the cup.
On Solana’s log chart, the distance from the 2022 low of $9 to $240 equates to over a 26-fold increase. If SOL mirrors similar historical moves in other markets, such a breakout could theoretically project long-term targets in the thousands. However, analysts note that this magnitude is rare, warranting a cautious interpretation among market participants.
At this stage, only a sustained push above $240 to $260 will confirm a genuine breakout from the five-year consolidation, potentially launching a major bullish leg. Conversely, a fall below the $80–85 support would undermine the pattern’s integrity, returning SOL to a prolonged downtrend and invalidating the bullish setup.
Large market players are maintaining positions within the defined range, waiting for confirmation of trend direction as the pattern matures.
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