The chart shows a cup and handle pattern in the $SOL
pair. This classic bullish pattern typically indicates the potential for a strong upward trend. In this formation, the price creates a "cup" shape by forming a rounded bottom after a decline, then consolidates or slightly pulls back to create the "handle" portion.
Analysis:
Cup Formation: The cup shape suggests a rounded recovery, showing potential for an upward breakout.
Handle Formation: After completing the cup, a small pullback or consolidation forms the handle, which is often the last phase before an upward breakout.
Target Price: The potential target price is usually measured by the depth of the cup. On this chart, a projected increase of approximately 97.56% is indicated, suggesting a price target of around 400 USDT if the pattern completes successfully. This would require a breakout above the resistance level near 205 USDT.
Strategic Levels:
Support Levels: If the pattern fails and the price falls below the breakout point, strong support levels are expected near previous support areas, such as around 150 USDT.
Target Price Area: If the pattern completes, there is potential for the price to move toward the target area, but volume is crucial for this type of breakout. Without sufficient volume, reaching the target might be challenging.
The cup and handle pattern is a strong bullish signal, but investors should always monitor volume and key support/resistance levels to manage risks effectively.
