- Solana is moving towards a critical breakout, forming a bullish cup-and-handle chart pattern at $170.
- A breakout above $200 would seal and potentially fuel a strong rally to new highs.
- In spite of a decline in volume, 83% of the traders are still bullish, indicating robust sentiment.
Solana’s price action is still the topic of focus within the cryptocurrency space as it consolidates against important resistance levels. Recent action indicates volatility and stability that are determined by trader sentiment and macroeconomic factors.
Technical Analysis of Solana’s Price Trend
In Solana’s weekly time frame, market analyst Ali Martinez spots a cup-and-handle pattern that could indicate a breakout. According to his study, the cup formed between the middle of 2022 and the beginning of 2024, indicating a protracted recovery from a steep downturn. A major change in Solana’s valuation occurred in December 2022 when it fell below $8 from a peak of about $250.
Source: Ali Martinez
Since then, SOL has ascended towards the $170 resistance, where the handle is forming.
Martinez stated that confirming this bullish setup would drive heavy price action and institutional and retail purchases. He emphasized that breaking through $200 would validate the formation and trigger a rally that would drive SOL to new highs depending on the depth of the pattern.
Martinez’s analysis also indicated that a failure to breach resistance could lead to retesting the $85 support level before an attempt. Pattern validation, he reported, would have an impact on Solana’s price action to make it the pivotal level worth monitoring for likely breakout scenarios among investors.
Market Data Insight from CoinMarketCap
CoinMarketCap figures support this assessment, with Solana priced at $131.37 and a market capitalization of $67.08 billion. This is after a 24-hour trading volume decrease of 40.38% to $1.36 billion, but market liquidity remains firm, as indicated in a 2.04% volume-to-market cap ratio.
Source: CoinMarketCap
Tracking price action over the last few weeks, CoinMarketCap charts show price action from February to March, with SOL finding support around $100. The asset recovered from a recent fall, which reflects investor confidence despite short-term uncertainty.
Sentiment metrics indicate that 83% of 426.8K responders are positive regarding SOL. Combining positivity with technical analysis means that follow-through is in the offing, pending supporting external factors.
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