Solana Price Forms Bullish Cup-and-Handle, Can It Rally to $3,800?

Key Insights:

• Solana’s cup-and-handle pattern hints at a possible rally to $3,800.
• SOL dropped to $112, marking its lowest price in nearly a year.
• A death cross signals weakness unless Solana holds the $125-$110 support zone.

Solana price is forming the cup and handle pattern, a technical pattern that gives a bullish outlook to its price chart. It recently traded at $112 which was its lowest point in the past one year and then started to recover. A continuation of this pattern could see Solana having an impressive rally. Notably, analysts suggest that holding the $110–$125 support zone is critical to preventing further downside pressure.

Solana Prices Cup-and-Handle Formation and Key Price Levels

Ali Martinez shared a SOL/USD weekly chart illustrating a rounded bottom forming the cup, followed by a slight downward drift forming the handle. If this pattern is going to be supported, Solana could surge towards $3,800. At $125, this target is a 2,940% increase from the current price.

Solana price recently dropped to $112 after five consecutive days of losses. The decline placed the price near a multi-year support level. The $110–$125 range remains a critical support zone, and maintaining this level could determine the next trend direction.

Additionally, according to Ted Pillows, SOL price is retesting this multi-year support zone, and a breakdown could lead to a 30%-40% correction.

Death Cross Signals Weakness Despite Bullish Outlook

Conversely, Solana price recently formed a death cross on the daily chart, a bearish indicator that occurs when the 50-day moving average crosses below the 200-day moving average. This may point to downside risk if bulls are unable to defend the critical support level. In case the price gets lower at $110, it may further drop to $80.

Additionally, according to Ted Pillows, Solana price is retesting a multi-year uptrend support level. This major trendline has historically provided solid support for Solana price. If SOL would manage to stay above this level, then the bulls might regain control and cancel out the effect of death cross.

Institutional Interest and CME Futures Launch

Interestingly, Ali Martinez’s bullish outlook aligns with increasing institutional interest in Solana. The Chicago Mercantile Exchange (CME) will launch Solana futures contracts on March 17, making them one of the first regulated Solana futures products in the U.S. This follows Coinbase’s introduction of Solana perpetual contracts earlier this year.

Furthermore, institutional involvement often increases liquidity and reduces volatility. The inclusion of Solana futures could enhance or stabilize its prices while attracting long-term investors. Furthermore, the coming CME futures may enhance market sentiment as pointed by Ted Pillows if Solana price retains support around $110–$125.

Solana Price Market Sentiment and Future Price Action

Solana’s short term price trend depends on the support area of $110 – $125. A decline below this level could possibly extend into a deeper correction. Conversely, a strong rally could confirm Martinez’s cup-and-handle analysis. Holding support and increasing buying pressure would reinforce the bullish scenario.

At the time of writing, Solana price traded at $132.27 while it has risen by 7.41% in the past 24 hours. Its market capitalization reached $67.4 billion, and trading volume decreased by 3.39% and reached $2.98 billion. It has a circulating supply of 509.55 million SOL, which also indicates a lot of activity in trading.

Disclaimer

In this article, the views and opinions stated by the author or any people named are for informational purposes only, and they don’t establish the investment, financial, or any other advice. Trading or investing in cryptocurrency assets comes with a risk of financial loss.