Solana News Today: Solana Surges 11.9% on Cup and Handle Breakout Amid Bullish Outlook

Solana (SOL) has surged 11.9% in the past week, breaking above the $200 level and reclaiming the $180 zone, a move that has reignited bullish sentiment among traders and analysts. The recent breakout from a well-defined “cup and handle” technical pattern has led some to speculate that SOL could potentially rise to $1,315—a level that would represent a 630% increase from its current price [1].

The pattern, identified by crypto analyst Ali Martinez on August 9, began forming after SOL’s sharp decline from its 2021 peak, bottoming at $8 in late 2022. A steady recovery over the following year completed the “cup” by mid-2024, while the “handle” represented a consolidation phase in a descending channel below $200. The recent upward move above $200 is seen as the breakout trigger, suggesting the possibility of further gains [1].

Should Solana reach $1,315, its market capitalization could approach $710 billion, potentially surpassing Ethereum as the second-largest cryptocurrency, assuming limited growth in ETH’s value. Key resistance levels ahead include $380, $752, and $1,048, which would need to be cleared to reach the ultimate target. However, the success of this trajectory will depend on consistent buying pressure and broader market support [1].

On the 4-hour chart, Solana’s price action appears mixed. While the 50-period simple moving average (SMA) at $169.71 has supported the rally from early August lows, a key downward trendline resistance intersects at $186.22. Technical indicators like RSI and MACD show bullish momentum, but with moderate strength. Candlestick patterns also indicate profit-taking behavior near resistance levels [1].

For traders, a confirmed daily close above $186.22 could open the door to $195.42 and $205.92, aligning with Fibonacci extensions. Conversely, a rejection at $186 may lead to a pullback toward $177.40 or $167.00, with the 50-SMA offering potential support for bounces. Risk management remains critical, with stop-loss levels set below $177 for long positions and above $187 for short setups [1].

According to technical analysts, the “cup and handle” pattern is a reliable indicator of long-term upside potential, particularly when the breakout is confirmed on strong volume. While historical data supports the pattern’s success rate, traders must remain cautious about sustaining momentum in a volatile market [1].

Separately, the news also included information about a new project called Bitcoin Hyper ($HYPER), which is a Bitcoin-native Layer 2 powered by the Solana Virtual Machine (SVM). The project aims to combine Bitcoin’s security with Solana’s speed, enabling faster and cheaper transactions and smart contracts. However, this content has been excluded from the summary as it is unrelated to the Solana price prediction [1].

Source:

[1] Solana Price Prediction: Will SOL’s 11.9% Weekly Momentum Carry It Towards All-Time Highs?

https://cryptonews.com/news/solana-price-prediction-will-sols-11-9-weekly-momentum-carry-it-towards-all-time-highs/