Solana Cup and Handle Pattern Hints at Major Price Surge
- Solana forms a cup and handle pattern, signaling a possible bullish breakout.
- Analysts predict Solana could reach $3,800 if the pattern is confirmed.
- Solana is trading at $125 after a recent price decline of 1.39%.
Solana (SOL), the sixth-largest cryptocurrency by market capitalization, is showing signs of forming a cup and handle pattern. This bullish technical formation suggests an upward breakout that could push Solana to new price levels. However, recent market movements and technical indicators present optimism and caution for traders and investors.
Solana Forms Cup and Handle Pattern
SOL price movements create a traditional cup and handle formation, showing bullish potential for increased value. The cup part includes a rounded bottom component, followed by a handle section that displays slight downward movement before a potential breakout. Based on their analysis, experts believe Solana will reach $3,800 in the long term, given that the pattern is successful.
The value of SOL stands at $125, as the market experienced a 1.39% decrease during the last 24 hours. The price drops do not challenge the cryptocurrencys potential future rally, provided its support zones remain intact. The confirmed breakout from the handle point would create a substantial price increase while drawing additional market participants toward Solana trading.
Ali, a crypto analyst, presented a technical analysis chart that strengthens positive outlooks. A remarkable growth of 2,940% predicts the asset will reach $3,800 if market expectations play out. The prediction stays optimistic, but market enthusiasm and rising implementation across industries can sustain long-term expansion.
Source: X
Solana Faces Short-Term Pressure Amid Death Cross Formation
Despite positive market forecasts, Solana triggered a technical indicator that signified downward momentum when the 50-day moving average rose above the 200-day moving average. The technical relation shows downward momentum when the 50-day moving average outpaces the 200-day moving average. The daily SOL chart revealed this bearish sign to traders on March 12.
The price of SOL plunged to $112 on Monday, thereby establishing its most significant downturn during the past twelve months. The cryptocurrency has experienced five consecutive days of decline because investors show caution and markets face widespread difficulties. A breakdown from $125 support until $110 support could trigger a SOL price decline down to $80 and below.
SOLs price may indicate positive change if it stays above its current support area. The support zone needs to remain stable to defend against negative market forces that aim to restore investor trust.
CME Launches Solana Futures as Institutional Interest Grows
The Chicago Mercantile Exchange (CME) plans to introduce Solana futures, which will launch on March 17 as part of its new offerings. These Solana futures emerged as some of the initial regulated derivatives available in the American market after Coinbase presented its SOL futures earlier in February. Regulated derivatives participation at institutions would boost SOLs reputation while establishing future market adoption.
The introduction of futures contracts delivers new trading opportunities to traders for SOL price management and speculation. The boost in market institutions drives asset liquidity, which minimizes price movement fluctuations. Through wider adoption, traditional financial institutions participation in SOL-related products will build sustainable long-term growth potential.
SOL shows ambiguous signs through its technical data without weakening its probable future growth. A cup and handle chart formation indicates bullish market forces, although short-term technical indicators indicate additional market drops are likely.
Read more: https://www.tronweekly.com/solana-cup-and-handle-pattern/
Text source: TronWeekly
