Solana (SOL) Begins Breakout From Cup and Handle Pattern — Path Toward $218 Opens Up

Key Takeaways

• Solana forms a bullish cup-and-handle pattern, with price climbing 7.25% in the past 24 hours to approach $160.
• The setup mirrors the 2024 pattern that preceded SOL’s rally to $260, raising speculation of a potential breakout.
• Open Interest has surged to $2.88 billion, a bullish on-chain signal that the SOL price could continue rising.

Solana’s (SOL) price appears to be in the early stages of a cup-and-handle breakout after several weeks of consolidation. In the past 24 hours, SOL’s market value has climbed by 7.25% and is inching toward $160.

The current pattern resembles when SOL slowly rose to over $260 in December. But will the altcoin follow the same path toward a new all-time high?

Let’s find out in this analysis.

Solana Activates Breakout Structure

Solana’s price has risen past $155 at press time, forming a cup-and-handle pattern. This bullish pattern signals a potential breakout to the upside.

As seen below, the pattern begins with a rounded bottom resembling a “U” shape. Later, the price moves downward or sideways to form the handle.

Try Our Recommended Crypto Exchanges

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.

Binance

promotions

Get a trading fee rebate voucher worth 20 USD when you register and verify your account.

Coins

317

Claim Offer

Phemex

promotions

Earn up to $6050 in crypto when you sign up

Coins

228

Claim Offer

Ecxx

promotions

Trusted, Secure & Crypto Friendly

Coins

5

Claim Offer

Solana’s price is currently flirting with the upper trendline of the handle. This consolidation indicates that the cryptocurrency is shaking out weak hands before eventually breaking out.

The last time this happened was between May and September 2024. The pattern’s result at that time was a breakout above $260 during the previous month of the year.

Therefore, if history rhymes with the current pattern, SOL could blaze past $200 in the coming weeks, especially with the Relative Strength Index (RSI) gearing up to climb higher.

Open Interest Strengthens

In addition, on-chain data from Santiment shows a surge in Solana’s Open Interest (OI). OI is the sum of the value of open contracts in the market.

An increase in Open Interest indicates new money flowing in, suggesting fresh capital entering the market. If the metric increases alongside rising prices, it’s a bullish sign, while rising OI during price drops is bearish.

However, a decrease in OI signifies Position unwinding, signaling capital leaving the market.  If sustained, this trend weakens the price.

Therefore, Solana’s jump in open Interest to $2.88 billion and recent price uptick indicate that SOL could maintain its upward momentum in the short term.

SOL Price Analysis: Trend Turns Positive

Looking at the daily chart, CCN observed that Solana’s price is currently testing the 20-period Exponential Moving Average (EMA).

This EMA typically acts as support or resistance depending on the asset’s position relative to it.

At press time, SOL has risen above the 20 EMA (orange), suggesting that the altcoin has found strong support and may be poised for further upside.

Additionally, the chart reveals that SOL is on the verge of breaking above the upper trendline of its descending channel. If this breakout is successful, the price could clear the resistance at $171.60, which may open the path toward $218.65.

However, if sellers manage to pull the price back below the upper trendline, it could invalidate the breakout. In that case, SOL might retrace toward the $138.10 support level.