From rejection to breakout, Solana completes cup-and-handle.
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Key Takeaways
After weeks of consolidation, SOL’s price has broken above the cup and handle.
A current MVRV ratio of 1.24 shows it is well below historical market tops.
SOL could break through key resistance at $218.75, several indicators show.
Some weeks back, Solana’s (SOL) price tested hinted at a breakout above a key bullish pattern. But days after that, bears invalidated the setup, sending Solana’s price to $130.
But today, the opposite has happened as SOL has finally broken out, showing signs of surging past overhead resistance levels.
In this analysis, CCN reveals how this happened and what could be next for the altcoin.
SOL Ready to Beat Supply Zone
As of this writing, Solana’s price has increased nearly 10% in the past seven days, and it briefly tapped $165 before slightly retracing. This price movement aligns with CCN’s recent analysis, which predicted that SOL could move closer to $180.
On the daily chart, there seems to be more going on. Specifically, the cryptocurrency’s recent jump has moved it above the upper trendline of a cup and handle pattern.
For context, the cup-and-handle is a bullish continuation pattern that resembles the shape of a teacup when plotted on a price chart.
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It begins with a rounded “cup” that reflects a gradual recovery after a downtrend. This is followed by a smaller consolidation phase — the “handle,” which typically slopes downward or moves sideways.
A breakout above the handle’s resistance signals a strong upward move, accompanied by increasing volume. At press time, this breakout strengthens the bullish case for Solana’s price and may signal the start of a sustained uptrend.
In supporting this move, the Chaikin Money Flow (CMF) has risen above the zero signal line, indicating intense buying pressure. Should this trend continue, SOL’s price might rise past the supply zone near $187.74.
Further, Solana’s recent price surge has pushed its Market Value to Realized Value (MVRV) ratio to 1.24, indicating that holders are sitting on growing unrealized profits.
The MVRV ratio gauges market tops and bottoms by comparing the current market value of coins with the average price at which they were last moved.
An overheated market typically occurs when the ratio enters historically high zones, indicating widespread unrealized gains, signaling a local top.
For Solana, previous cycle tops have happened when the MVRV ratio ranged between 2.65 and 6.12.
With the current ratio well below that threshold, SOL’s price still has room to rally. If momentum continues, SOL might break above $200 and run at new all-time highs.
Besides the cup and handle breakout, another look at the SOL/USD chart shows that other indicators also support a continued upswing.
For instance, the Parabolic Stop And Reverse (SAR) dots are below the price. This position strongly supports Solana’s price to break the resistance at $171.61.
In addition, the Awesome Oscillator (AO) has risen to the positive zone after forming a bullish twin peak. Should this trend remain the same, Solana’s price might surge above $218.75 in the coming weeks.
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.
