In the midst of the ongoing relief rally in the crypto market, the leading altcoin Solana‘s (SOL) price has shown remarkable resilience by maintaining its position above the psychologically important $80 level. The revival of buying interest has increased the altcoin’s price by 23 percent in just one week, reaching its current trading price of $97.3.
The “Cup and Handle” Formation on Solana’s Price Chart
Amidst the downturn in the crypto market following the challenges faced after the approval of the US’s first spot Bitcoin ETF, Solana’s SOL price saw a significant correction, with the altcoin’s price dropping from $126 to $79. After this sharp 37.5% drop, the altcoin found support at the intersection of the $80 level and the 38.2% Fibonacci retracement level.
Following Bitcoin’s price rise above $42,000, the crypto market began to show signs of recovery, and SOL also rebounded. If the current upward trend continues, it can be expected that buyers will target the resistance level of $102, which corresponds to the 50% Fibonacci retracement of the last correction.
Breaking above this resistance could further elevate SOL’s price and potentially revisit the $126 level. Analysis of the daily time frame chart indicates that such a rally could complete a “Cup and Handle” formation, a bullish reversal pattern typically observed at the end of major bear markets, signaling a significant trend reversal for the altcoin.
Is SOL Price Ready for an Uptrend?
The approximately two-year-old “Cup and Handle” formation on Solana’s chart points to a long-term uptrend. A breakout above the neckline resistance at $126 would be a leading indicator of trend reversal and show that the altcoin is emerging from a significant consolidation phase. With continued buying, the rally following the breakout could see SOL’s price rise towards around $256.
Currently, SOL’s price is trending above the 20 and 50-day Exponential Moving Averages (EMAs) on the daily time frame, indicating the start of a recovery trend. Moreover, the potential bullish crossover between the DI+ and DI- lines of the Directional Movement Index on the same time frame has the potential to accelerate the upward momentum.
