Solana Price Eyes Breakout As Cup-and-Handle Nears $200 Trigger

Key Highlights

• SPL token creation drops 60%, signaling the end of the memecoin season.
• Solana forms a bullish cup-and-handle, eyes breakout above $200.
• TOTAL2 holds $1.04T support, targets $1.74T and higher this year.

Solana price is progressing beyond its early hype phase into a more refined stage of growth. The focus is now on enhancing blockchain operations and strengthening market performance.

The market shows signs of a textbook bullish pattern as memecoin activity has started to decrease. Meanwhile, the altcoin market’s stable position indicates that a significant price increase may soon affect all tokens.

Memecoin Mania Slows as Solana Token Creation Plunges

In January 2025, Solana saw a significant surge in new SPL token launches. On its peak day, over 95,000 tokens were introduced, marking a record-breaking moment. The creation of SPL tokens on Solana was the foundation for an extensive memecoin-based frenzy.

Users could easily create new tokens within minutes as many people attempted to capitalize on upcoming viral trends. These coins lacked practical use, yet they attracted significant trade interest.

That pace didn’t last. The daily token launches saw a sharp decline from late January to mid-March. During this period, the number dropped below 40,000.

The current number represents less than half of the original figure from recent weeks. This rapid decline indicates that speculative behavior has cooled down.

The reduction in new token creation suggests a shift in user behavior, with less focus on hype-chasing. Developers now appear to prioritize creating more practical and meaningful projects.

The reduction of token creation shows Solana is redirecting its efforts, which could result in better and enduring expansion.

Solana Price Chart Sets Up for a Bullish Breakout

While activity on-chain slows, Solana’s chart has clear price breakout indications. According to Ali Charts, the weekly chart reveals a cup-and-handle pattern. Traders often use this formation to predict substantial SOL price increases.

The pattern is named for its shape, which looks like a teacup with a curved base. A smaller dip forms the handle, completing the design.

Solana launched the price pattern in late 2021, peaking near $260 before plummeting to approximately $8. The token has steadily recovered since its low point to reach the current trading range of $129.

The slight price reduction serves as the intended handle in the pattern design. However, the market is currently focused on the $200 price level. That’s the rim of the cup.

A decisive break above $200 could confirm the setup’s validity. Based on the pattern depth analysis, this move might propel SOL price toward $392.

Altcoins Poised to Rally If TOTAL2 Holds Support

Zooming out, the overall altcoin market sector shows bullish signs that match the market’s positive trend. The TOTAL2 chart monitors crypto assets excluding Bitcoin and currently rests near its important $1.04 trillion valuation point.

TOTAL2’s chart showed a large rounded bottom formation. Recently, it has developed a mini-handle shape, followed by a pullback.

The price trend of Solana matches TOTAL2’s current position in its breakout area. CryptoElites predicted that altcoins could see a notable price surge if the current support level holds.

Strengthened inflows in April are expected to play a key role in driving this upward momentum. TOTAL2 is projected to reach $1.74 Trillion in the next few months.

If market momentum strengthens, it could hit $2.57 Trillion later in the year. By the end of the year, the projections suggested $4.22 Trillion as a possible target.

Disclaimer

This article is for informational purposes only and does not provide any financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.