Despite a minor setback of 0.58% in the past 24 hours, Solana (SOL) has held steady with an approximate 10% gain over the past week. This has been largely credited to the general uptick in the cryptocurrency market that pushed SOL’s value into the $160 range. Analyst Ali Martinez has indicated that Solana could be on the verge of a skyrocketing rally, provided a specific market condition is met.
In a post on July 12, Martinez presented an optimistic technical forecast for the Solana market. He suggested that the altcoin is at a crucial price crossroads. The analyst identified a massive cup-and-handle pattern from the weekly chart, which often foreshadows a significant price surge. However, SOL must overcome a pivotal price resistance at the $170 mark.
The cup-and-handle pattern is a bullish chart configuration that signals the potential for significant price ascents. The pattern somewhat resembles a teacup, commencing with a bearish market, followed by a price recuperation of equal magnitude, as seen between the start of 2022 and 2025.
During this timeframe, Solana experienced a harsh drop from approximately $250 to a cycle low of $9.88 before gradually climbing back to a similar peak, forming the cup pattern. Following this, SOL underwent considerable price adjustments and rebounds, eventually forming a descending price pattern, symbolizing the handle of this formation.
Crucially, the cup-and-handle pattern only translates into a price surge after a decisive price breakout above the formation’s neckline. With its recent gains, Solana is nearing this neckline at the $170 price level. Martinez suggests that a successful weekly close above this resistance will confirm Solana’s bullish potential, inciting substantial market demand and setting the stage for higher price levels.
According to Fibonacci retracement and extension levels on the chart, the initial price target post-breakout is set at $295, which matches the current all-time high. However, the historical significance of breakouts from cup-and-handle patterns indicates higher price targets, potentially reaching $787, $1,314, and even a staggering $2,744.
However, if Solana faces rejection at the $170 mark, it may be forced to seek lower support levels around $135 or even $100, a significant demand zone in the past.
At the time of writing, Solana is trading at $162.58, reflecting the above-mentioned 0.58% decline. The asset’s daily trading volume has also dropped by 38.77% to $3.72 billion.
