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Recent market price action in the past 48 hours has brought up bullish talksfor cryptocurrencies, with assets like Solana taking upcenter stage. In the case of Solana, crypto analyst Ali Martinez has hit the bullish nailwith his recent prediction that Solana could see a staggering 1,800% price surge and reach $4,000 very soon. Related Reading Solana Breaks Above Daily Downtrend – Analyst Expects New ATH Soon 1 day ago
In a post on social media platform X, Martinez highlighted adeveloping “cup and handle” chart pattern, which he claims is signaling a massive bullish breakout for Solana. He backed his analysis with insights from charting expert Thomas N. Bulkowski. Solana’s Road To $4,000
Martinez’s take on Solana is based on the monthly timeframe for the cryptocurrency’s price action. As he pointed out, Solana’s price action over the past few years most likely looks like that of a cup and handle pattern.This formation cuts across the 2022 bear market, the 2023 consolidation plus recovery, and the 2024 bull market.
In terms of formation period, the cup part of the pattern was formed throughout 2022, 2023, and early 2024, when Solana broke above the resistance trendline for the first time. The handle formation was formed by Solana’s up-and-down movement around the $200 price level for most of 2024, which eventually culminated in a breakout to a new all-time highof $263 in November.
As shown in the chart below, the cup and handle formation seems to have been completed already, and the only thing left is to wait and see how much Solana surges to the upside. In terms of a price target, Martinez made use of the Fibonacci extension indicator, projecting it from the 2022 bear market low of $9.96. The target is around the 2.00 Fib extension level, which puts the projected target around $4,000.
Understanding The Cup And Handle: A Proven Bullish Formation
The cup-and-handle pattern is a classic technical indicator often associated with bullish market behavior. It consists of a rounded “cup” that represents a period of consolidation and recovery, followed by a smaller “handle,” indicating a brief consolidation before a breakout. SOL is currently trading at $214. Chart: TradingView
According to Thomas N. Bulkowski, who Martinez also highlighted in his analysis,the cup-and-handle ranks as the third most effective bullish pattern, with a 61% likelihood of achieving its projected target. Considering the unpredictable nature of cryptocurrencies, the odds this pattern presents is quite notable. Related Reading Bitcoin Dominates 2024, Outperforms Gold And Major Indices – Details 22 hours ago
At the time of writing, Solana is trading at $215 and is up by 3% and 16% in the past 24 hours and seven days, respectively. This price increase comes alongside a surge in activity,with Solana witnessing a 16% trading volume increase in the past 24 hours.
If Solana were to reach $4,000, it would translate to a return of about 1,800% from the current price.
Featured image from Pexels, chart from TradingView