Esteemed technical analyst Peter Brandt has pinpointed a unique long-term “cup and handle” pattern emerging in Solana‘s weekly chart. As Solana trades around $116.29, Brandt indicates this structural formation could hint at a significant upward potential, with the possibility of prices reaching up to $240, marking a substantial potential rise.
What Does Solana’s Five-Year Chart Reveal?
The chart shared by Brandt captures an extensive price history for Solana, covering the last five years. Starting from its peak in 2021, Solana experienced a drastic dip to around $9 during the late 2022 market downturn. The corrective phase in 2024 completed the “cup” section, with a two-year sideways movement forming the “handle.”
Peter Brandt emphasizes that the current consolidation offers a significant long-term outlook for SOL.
Implications of Breaking Through the $240-$260 Range?
Analyzed on a logarithmic scale, the extended move from $116.29 to $240 is merely the beginning of the structure’s projection. The decisive signal would be if the price firmly establishes itself above the $240 to $260 resistance range, considered the “cup’s” top edge.
Technical indicators supporting this view include an ATR of 17.51, indicating cyclically decreased volatility, while the ADX level remains at 20.10, implying that the market is in a consolidation phase rather than showing a strong directional trend.
- The long-term “cup and handle” pattern suggests potential upward movements to $240 and beyond.
- Establishing above $240 could signify a breakthrough, affirming the formation’s validity.
- A drop below $80 could invalidate the pattern, highlighting downside risks.
Attention remains toward the key ranges, with traders maintaining positions within these limits. While the classic formation retains its prospective nature, focus lies on two strategic areas: the resistance of $240 to $260 and the support at $80 to $85. As markets closely observe these pivotal levels, Solana’s potential trajectory will unfold progressively.
