Solana chart ‘cup-and-handle’ positions SOL price for potential 2000% rally
2024.10.21 07:33
Solana (SOL) may rise by more than 2,000% in the coming months, based on favorable chart technicals.
The so-called “Ethereum killer” has already risen by over 2,000% since establishing a cycle low of around $10 in November 2022. In doing so, its price trends have painted what appears to be a cup-and-handle pattern on the weekly chart, as spotted by veteran analyst Peter Brandt.
SOL/USD weekly price chart. Source: Peter Brandt
Solana in the final stage of potential breakout
A cup-and-handle pattern develops when the price undergoes a U-shaped recovery, resembling a “cup,“ followed by a period of consolidation, which looks like a “handle.”
The handle often signals a moment of indecision as traders gauge whether the upward trend will continue. That seems to be the market psychology lately, with SOL’s price consolidating inside the $100-200 trading range since March 2024.
As a rule of technical analysis, a cup-and-handle pattern typically resolves when the price breaks above its common neckline resistance ($205 in SOL’s case) and rises by as much as the maximum distance between the cup’s trough and the neckline.
SOL/USD weekly price chart. Source: TradingView
That puts SOL’s cup-and-handle breakout target for 2025-2026 at around $4,500, up by more than 2,000% from current price levels.
However, it’s important to consider the historical probabilities of the cup-and-handle pattern.
For instance, a study by veteran analyst Thomas Bulkowski, who analyzed 913 cup-and-handle trades in the stock market, found that only 61% of these setups reached their expected targets.
In other words, the cup-and-handle doesn’t always guarantee the full upside move.
Pots-halving “altseason” may propel SOL price
More upside cues for Solana come from hopes for an altcoin season (or altseason) that historically follows Bitcoin halving events.
Related: 3 key metrics point to ‘up only season’ in altcoins — Analysts
For instance, the altcoin market consolidated sideways two months after the May 2020 Bitcoin halving, breaking out afterward to grow by over 1,950%. The same period saw SOL’s price rise by over 49,360%.
SOL/USDT versus altcoin market weekly chart. Source: TradingView
A similar altcoin market boom occurred after the Bitcoin halvings in 2016, though Solana did not yet exist at the time.
Historically, after Bitcoin’s halving events, traders often shift their focus from Bitcoin to altcoins.
Source: X
Once Bitcoin has rallied, its potential for further high percentage gains may appear limited, particularly for traders seeking larger returns. As a result, attention turns to altcoins—smaller market cap assets that are more volatile but can offer higher percentage gains during bullish phases.
This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
