Recent fluctuations in the market over the last two days have sparked discussions about a potential bullish trend for digital currencies, with cryptocurrencies like Solana leading the way. Analyst Ali Martinez has made a bold prediction that Solana could experience an impressive 1,800% price surge, reaching $4,000 in the near future.
On a social media platform, Martinez pointed out a developing “cup and handle” chart pattern for Solana, indicating a significant bullish breakout. He referenced insights from charting expert Thomas N. Bulkowski to support his analysis.
The Path to $4,000 for Solana
Martinez’s assessment of Solana is based on the monthly price action of the cryptocurrency. He believes that Solana’s price movement in recent years resembles a cup and handle pattern, spanning the bear market of 2022, the consolidation and recovery of 2023, and the bull market of 2024.
The cup portion of the pattern formed from 2022 to early 2024, when Solana broke above the resistance trendline. The handle formation occurred in 2024, with Solana fluctuating around the $200 price level before breaking out to a new all-time high of $263 in November.
In the chart below, the completion of the cup and handle formation suggests an impending surge in Solana’s price towards the upside, with a projected target of around $4,000 based on Fibonacci extension levels.
The Cup And Handle Pattern: A Reliable Bullish Signal
The cup-and-handle pattern is a well-known technical indicator associated with bullish market movements, characterized by a rounded cup representing consolidation and recovery, followed by a handle indicating a brief consolidation before a breakout.
According to Bulkowski, the cup-and-handle pattern ranks as the third most effective bullish pattern, with a 61% probability of achieving its target. Despite the unpredictable nature of cryptocurrencies, the pattern’s reliability is noteworthy.
Currently, Solana is trading at $215, showing a 3% increase in the past 24 hours and a 16% rise over the past week. This upward trend coincides with a surge in trading volume, indicating increased activity in the Solana market.
If Solana reaches $4,000, investors could potentially see a return of 1,800% from the current price.
Featured image from Pexels, chart from TradingView
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