Solana rebounds after CFTC sidelining, with charts signaling strength | Credit: Hameem Sarwar
Share
Key Takeaways
SOL forms bullish cup-and-handle, nearing breakout confirmation.
The CMF turned positive as it shrugged off the CFTC exclusion.
Solana could break out above $174, but it depends on some key levels.
The Commodity Futures Trading Commission’s (CFTC) decision to recognize only Bitcoin (BTC), Ethereum (ETH), and USDC as acceptable collateral might have sidelined Solana (SOL) on paper.
But the price action tells a different story. Despite missing the regulatory nod that many expected, Solana’s price bounced.
In fact, several indicators now show that the recovery is not yet over. Here is why.
Solana Forms Cup-and-Handle Pattern
Looking at the 4-hour chart, Solana’s price has formed a well-defined cup and handle pattern.
The “cup” reflects a rounded bottom created after a period of consolidation, showing that sellers gradually lost control as buyers accumulated at lower levels.
Get These Top Crypto Casino Offers Now!
Sponsored
Disclosure
We sometimes use affiliate links in our content, when clicking on those we might receive a commission at no extra cost to you. By using this website you agree to our terms and conditions and privacy policy.
The “handle” forms as a minor pullback or consolidation near the right side of the cup.
This phase typically represents traders taking profit or waiting for stronger confirmation before re-entering.
In Solana’s case, the handle has developed cleanly and is now pressing against the neckline, the structure’s critical breakout level.
As shown below, SOL seems ready to break above both the neckline and the resistance line.
A breakout, especially one backed by substantial volume, would validate the cup-and-handle pattern and confirm that bulls are regaining momentum.
If successful, this formation could drive SOL’s price toward the next resistance point at $152.99. However, this will only happen if the support at $123.35 holds.
This is because the Chaikin Money Flow (CMF) has risen above the zero signal line, indicating that buyers are regaining control to drive Solana’s price higher.
Interestingly, this comes two days after the CFTC decided to exclude SOL from the list of assets eligible for use as collateral.
On Dec. 8, Acting Chairman Caroline D. Pham announced that the regulator will recognize only BTC, ETH, and USDC as approved collateral assets, aligning with the GENIUS Act passed earlier this year.
“Today, I am launching a U.S. digital assets pilot program for tokenized collateral, including bitcoin and ether, in our derivatives markets that establishes clear guardrails to protect customer assets and provides enhanced CFTC monitoring and reporting,” Pham disclosed.
SOL Price Price Structure Strengthens
Looking at the daily chart, Solana’s price is now flirting with the upper trendline of its descending channel.
Meanwhile, the Awesome Oscillator (AO) remains in negative territory but has printed a green histogram bar.
Adding to this bullish outlook, Solana has climbed above the 20-day Exponential Moving Average (EMA).
This move signals the beginning of a short-term trend shift and reinforces the possibility of a breakout.
If this momentum holds, SOL could breach $155.80, which aligns with the 0.382 Fibonacci retracement level.
A confirmed breakout above this Fib level would set the stage for a push toward $174.49, with a potential extension toward $180 if buyers maintain pressure.
Disclaimer:
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Victor Olanrewaju is a crypto analyst and reporter at CCN with deep roots in on-chain research and technical analysis. His crypto journey began in 2017, but it was the 2020 Uniswap airdrop that sparked a full-time pivot into the space.
With a foundation in copywriting, Victor honed his craft creating high-converting content for leading crypto brokers — most notably an XRP price prediction that ranked #1 on Google during the 2021 bull run.
He later joined AMBCrypto in 2022, where he combined storytelling with technical and on-chain analysis to cover key market narratives.
In 2024, he expanded his expertise at BeInCrypto, collaborating with analysts and using tools like Glassnode, Santiment, and IntoTheBlock to break down Bitcoin and altcoin trends.
At CCN, Victor covers the top cryptocurrencies, memecoins, macro shifts, blending real-time insights with deep-dive metrics.
He holds a Bachelor’s degree in Physics from the University of Ibadan, equipping him to simplify complex data for a wide audience. Follow his work or connect on LinkedIn or X.
