Solana’s price is drawing attention with a distinctive technical pattern on its monthly chart. Analysts highlight the formation of a major cup and handle setup and note that price action is currently hovering at a critical support level. After peaking in January 2021, Solana entered a prolonged decline, bottoming out with rounded lows throughout 2022 and 2023 before rebounding toward previous resistance from 2021. This price trajectory is being interpreted as a long-term recovery scenario.
Key pattern in the monthly chart and crucial supports
According to analysts, a curved white line on the chart marks the cup portion of the formation. After an upward move, Solana is now trading near the lower end of the potential handle, depicted by a blue channel. In classic technical analysis, price often consolidates sideways within the handle after a sharp correction, which matches the current pattern.
Solana is now moving close to the lower edge of this handle formation. The blue trend line represents the most critical short-term support. If bulls are able to defend this area, the integrity of the cup and handle setup is likely to remain intact.
However, for the technical formation to be fully confirmed on the monthly chart, Solana must break through the upper trend line with significant trading volume, followed by overcoming a wider resistance zone. Absent such a move, the pattern signals potential but does not yet suggest the emergence of strong bullish momentum.
Analysts have stated, “If Solana loses the lower trend line within the handle region, the strength of the cup and handle formation may weaken considerably and the chart could deepen beyond current expectations.”
At present, Solana continues to move within the boundaries of the handle. For buyers to spark a new upward push in the short term, the key support must hold, and the resistance above must be breached to the upside.
Long-term structure and major support under watch
Solana’s weekly chart, meanwhile, also points to a robust recovery phase. According to recent data shared by analyst Moe, the price currently sits just above an important support band, with a lower red band offering support and an upper red band highlighted as major resistance.
The chart also shows a descending black trend line originating from Solana’s peak in 2021. Right now, Solana is trading above this long-term downtrend. This shift suggests that the previous strong bearish momentum is fading.
Despite short-term price swings, Moe contends that Solana’s long-term outlook remains unchanged. From a technical perspective, Solana continues to find support above the broken long-term trend line. The current projection calls for another bounce from the support before possibly targeting the upper resistance, as represented by the green trajectory.
Moe notes that “despite intraday volatility in the price chart, Solana’s long-term position remains unchanged,” adding that maintaining support is key to any potential new upward movement.
Based on this technical outlook, if Solana falls below the lower support band, the long-term recovery scenario could be derailed. For now, the price remains above the main support, and whether a new upward move will begin hinges on this level holding firm.
