Solana (SOL) is showing multiple technical patterns on its monthly chart, drawing attention from traders and market watchers.
Meanwhile, its price stands at around $225, with a 24-hour trading volume of $7.3 billion. It has gained 1% in the last day and 1% over the past week.
Cup and Handle Pattern Forms on Monthly Chart
A monthly chart shared by Lark Davis shows a possible cup and handle pattern on SOL. The formation stretches from the 2021 peak, through the 2022 low, to the current handle phase. The area between $270 and $301 remains a key zone. If SOL moves above this range, it may trigger a strong upward move.
Using Fibonacci levels, the 1.618 extension places a price target around $425. A second target, based on the 2.618 level, is near $624. These figures come from historical price moves and are commonly used for tracking breakout levels. Davis noted that the $425 level lines up with the 1.618 projection.
MACD and RSI Indicators Show Strength
The monthly MACD is showing a crossover, where the main line is now above the signal line. This setup is often viewed as a sign of building momentum, especially on long-term charts. It has appeared during periods when trend changes begin to take shape.
Another chart from CryptoJack points to an ascending triangle, with SOL pressing against horizontal resistance. The pattern is made of higher lows and flat highs, with resistance near $380. The monthly RSI has also crossed above its signal line. CryptoJack posted,
“SOL looks ready to explode. Ascending triangle + RSI golden cross = bullish combo. The breakout could be huge.”
This pattern still needs confirmation with a close above the resistance.
Lennaert Snyder noted that SOL bounced from weekly support near $193, keeping the higher timeframe trend in place. He mentioned that $213 could serve as a pullback level, with $232 acting as resistance for further upside.
ETF Filing Adds Market Interest
Bitwise updated its Solana ETF filing this week, setting an annual fee of 0.20% and adding a staking feature. Bloomberg ETF analyst Eric Balchunas commented,
“They prob figured it’s gonna end up there anyway, so just do it now.”
He referred to the move as a bold step in a competitive market.
The ETF is still awaiting a decision from the US Securities and Exchange Commission. Traders are watching how this may affect volume and sentiment around SOL.
Separately, Jupiter, a decentralized exchange built on Solana, announced plans to launch its own stablecoin, JupUSD, by year-end. The stablecoin will be used across its trading, lending, and derivatives products.
The post SOL’s Cup and Handle Hints at $425 Target, Bull Run Ahead? appeared first on CryptoPotato.
