Solana Falls 13%; Will It Be Able to Recover From Analyst's $1,000 Forecast?
The recent ups and downs in the cryptocurrency market have swept Solana (SOL) along with it. The 13% drop in SOL over the last week has investors worried about the future after the spectacular surge earlier in 2024.
Patel, a technical analyst, thinks he may have finally figured out the future of the fast blockchain—and it has something to do with a cool drink. A famous "Cup and Handle" pattern, a bullish indication that resembles, well, a cup and its handle, is identified by Patel when he examines the weekly SOL/USDT chart.
According to Patel, Solana's spectacular ascent and fall fall inside the "cup" part of the pattern, which begins in the middle of 2021 and continues in the middle of 2022. Currently, we are at the "handle" phase of consolidation, when prices level out after the first parabolic surge.
The most important thing for SOL bulls is to break beyond the psychological $200–$225 level of resistance. The beginning of a bullish comeback may be in sight if this resistance level is broken.
$1.042 or $520: Patel's Lofty Price Objectives
Beyond the immediate barrier, Patel's research outlines two possible medium- to long-term price goals for SOL. First and foremost, we have TP1 around $520, which would indicate a substantial resurgence and bring us back to our prior highs.
However, Patel continues. His second goal, TP2, is a jaw-dropping $1,042, which shows a very positive outlook for the future. But getting to such tremendous heights depends on finishing the handle creation properly.
In order to build momentum for a strong breakout, this might entail a retreat and more consolidation.
