Solana (SOL) has been caught in the crypto current, tossed back and forth by recent market volatility. After an impressive rally earlier in 2024, SOL has dipped by 13% over the past week, leaving investors wondering what lies ahead. Related Reading: Toncoin On Fire: Crypto Explodes To All-Time High – Can It Hit $10? Technical analyst, Patel, believes he may have charted a course for the high-speed blockchain’s future, and it involves a refreshing beverage. Examining the weekly SOL/USDT chart, Patel identifies a classic “Cup and Handle” pattern, a bullish indicator that resembles, well, a cup and its handle. Frothy Past, Steady Handle: A Recipe For A Breakout? The “cup” portion of the pattern, according to Patel, stretches from mid-2021 to mid-2022, encompassing Solana’s meteoric rise and subsequent fall. The current consolidation phase forms the “handle,” a period where the price steadies after the initial parabolic movement. For SOL bulls, the key hurdle lies in surpassing the resistance zone around $200-$225, a level that has historically acted as a psychological barrier. A successful breach of this resistance could be the first sip of a bullish resurgence. #SOLANA $1000 Roadmap 🚀$SOL pic.twitter.com/s7KipEbDTd — Crypto Patel (@CryptoPatel) June 22, 2024 $520 Or $1,042: Patel’s Ambitious Price Targets Patel’s analysis ventures beyond the immediate resistance, outlining two potential price targets for SOL in the medium to long term. The first target, TP1, sits at $520, a level that would revisit previous highs and signify a significant upswing. But Patel doesn’t stop there. His second target, TP2, raises eyebrows at a staggering $1,042, reflecting an extremely optimistic long-term view. However, reaching these lofty heights hinges on completing the handle formation entirely. This could involve a further consolidation phase and a potential pullback, a necessary evil to gather momentum for a powerful breakout. Can SOL Weather The Short-Term Squall? While Patel’s analysis paints a rosy long-term picture, the short-term forecast for SOL is a bit cloudier. Current market indicators suggest a bearish undercurrent, with Solana trading below its 100-day Simple Moving Average (SMA). The Relative Strength Index (RSI) adds to the bearish sentiment, hovering below 50% and flirting with oversold territory. Related Reading: Forget The Dip! XRP Primed For Epic Rally To $36, Expert Claims In the immediate future, SOL could face a potential downside scenario, with some analysts predicting a dip towards the $118 support level, or even as low as $99. However, there’s always a chance of a reversal. If the tides turn, SOL could potentially surge past the $140 resistance level, setting its sights on loftier targets like $160 and $188. Patel’s analysis serves as a strategic roadmap for investors navigating the choppy waters of the cryptocurrency market. While SOL may encounter some short-term turbulence, the long-term outlook remains bullish, contingent on breaching crucial resistance levels and maintaining upward momentum. Featured image from Lookphotos, chart from TradingView
