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.
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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.
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.
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.
SOL/USD Daily Chart | Credit: TradingView
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.
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.
