Solana's Weekly Chart Displays Cup and Handle Pattern, Suggesting a Potential Breakout

Solana's weekly chart shows a classic cup and handle pattern, with resistance tested near $150 and bullish momentum starting to build. The Accumulation/Distribution line has held steady with a slight upward slope, indicating long-term holders are accumulating. The Stochastic RSI crossover from oversold territory also supports a potential breakout. A breakout above $150 could complete the pattern and trigger a measured move, targeting levels between $600 and $1,000.

Solana's weekly chart has been displaying a classic cup and handle pattern, with resistance tested near $150 and bullish momentum starting to build. This pattern suggests a potential breakout, which could trigger a measured move, targeting levels between $600 and $1,000 [1].

The Accumulation/Distribution line has held steady with a slight upward slope, indicating that long-term holders are accumulating. This is a positive sign for the asset's long-term prospects. Additionally, the Stochastic RSI crossover from oversold territory further supports the potential for a breakout above $150 [1].

Solana's recent surge has been driven by strong fundamentals, including a new all-time high in stablecoin supply of 12.80 billion. This indicates rising prices and heightened confidence among investors and users in the Solana network [1].

On-chain activity has also been robust, with a 13.4% rise in daily transactions, reaching near 100 million. This is a testament to Solana's enduring capacity for processing high volumes of activity [1].

However, while the bullish sentiment is strong, there are signs that suggest caution may be warranted. The SOPR (Spent Output Profit Ratio) has settled above 1 for two consecutive weeks, indicating a market where traders are realizing profits. However, if the SOPR remains elevated for too long, it might signal overzealous market sentiment, potentially leading to profit-taking surges that could reverse the gains [1].

Furthermore, the number of active addresses on Solana has dropped sharply from 61 million to 46 million in just one day. This decline might hinder Solana's efforts to stay above the $150 mark without experiencing a necessary cooldown phase [1].

In conclusion, while Solana showcases strong market presence with buoyant price action and stablecoin growth, there are signs that underscore the need for vigilance in the face of market volatility. The combination of high SOPR and dwindling active addresses calls for a balanced approach, suggesting that while growth is attainable, the path ahead may require caution and strategic adjustments.

References:
[1] https://en.coinotag.com/solanas-strong-fundamentals-suggest-potential-for-continued-growth-despite-signs-of-market-fatigue/