Solana (SOL) is riding a wave of strong momentum, showing an impressive price surge as it benefits from renewed confidence and growth across the broader crypto market. The SOL is currently trading inside a cup and handle pattern, which often leads to a bullish reversal. If a successful breakout occurs, then it will lead to a maximum resistance zone around $500.
At the time of writing, SOL is trading at $213.91 with a 24-hour trading volume of $14.11 billion and a market capitalization of $115.69 billion. The SOL price over the last 24 hours is up by 4.29%, and over the last week it is also up by 15.62% with a high potential for the next major rally.
Cup and handle pattern positions Solana for gains
Solana’s price movement is again attracting traders’ eyes as a number of leading technical indicators show that the native blockchain token SOL might be about to make a huge breakout.
Among the most potent indicators is that derived from Bollinger Bands on Solana’s weekly chart. Volatility and probable price ranges delineated by such bands have tightened consistently over several weeks. Such tightness in the past tends to precede a massive movement in the market by an expansion in volatility, which often culminates in a strong rally.
Adding to the bullish case is an evolving cup and handle formation, which appears multi-cycle in nature, a classic technical formation that tends to precede further upward price action. On longer-term charts, such a pattern is a sign of absorption over several market cycles in which buyers are absorbing supply before illuminating the next phase northward.
Solana Poised to Lead Altcoin Season Rally
Traders are also flashing a broader signal: a potential beginning for altcoin season. That crypto cycle phase is one in which capital tends to flow out of Bitcoin into high-interest alternate coins for steep gains. Solana, thanks in part to its vibrant ecosystem for decentralized apps and strong developer base, is well positioned to attract disproportionate interest if this flow gets traction.
With all of these factors in alignment, there are some analysts who think Solana might take a dramatic jump in coming months. A token price target of $500—admittedly aggressive—has come up in discussion amongst bullish investors, which would equate to over a 5x jump from its current range.
