The technical setup of Solana (SOL) suggests that, in the effort to reclaim the resistance level of $250, decentralized finance (DeFi) assets could rise by 1,600%.

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Currently, Solana is showing a 'cup and handle' pattern—historically, this bottom formation for Solana occurred between late 2022 and early 2024, marking a period of recovery and strength. The handle is characterized by a short-term pullback, consistent with Solana's recent price movements, consolidating near the $250 resistance level.

Martinez believes that a potential breakout would set the next target around $4,000—an all-time high. The 1.618 Fibonacci extension supports this outlook, pointing to $2,236, while the 1.786 extension level is very close to the $4,000 target.

Solana maintains above the 0.786 retracement level at $123.44, which also enhances its potential bullish momentum. However, this market expert did not provide a timeline for when these price targets might be achieved.

By any standard, reaching $4,000 for Solana is an ambitious goal that would elevate SOL's market capitalization to nearly $2 trillion. From this perspective, if the first cryptocurrency experiences minimal growth, SOL would be on par with Bitcoin (BTC).

SOL Hits Double Bottom

Meanwhile, Solana is facing bearish sentiment in the short term, consistent with overall market momentum. However, as trading analyst CryptoBusy pointed out on December 11, SOL may have overcome this bearish momentum after forming a double bottom pattern within an hour. This bullish reversal pattern indicates a potential breakout may be imminent.

If bullish momentum continues, SOL's next targets are the 0.5 Fibonacci level ($225) and the 0.618 level ($230). A moderate move from the breakout point could lead to a price increase of $10 (4.56%).

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