Solana chart cup-and-handle positions SOL price for 2,000% rally

Based on upcoming chart technicals, Solana SOL (SOL) could rise over 2,000% in the coming months.

In the year After establishing a cycle low around $10 in November 2022, the so-called “Ethereum killer” has rallied more than 2,000%. By doing this, the price movements draw what appears to be a cup and handle pattern each week. Chart, as seen by veteran analyst Peter Brandt.

At the final stage of Solana formation

A cup and handle pattern is formed when the price undergoes a U-shaped recovery, which looks like a “cup”, followed by a consolidation period, which looks like a “handle”.

The handle usually indicates a decision period when traders decide that the uptrend will continue. That seems to be market psychology recently, with SOL prices consolidating in the $100–200 trading range since March 2024.

In technical analysis, the cup and handle pattern is resolved when the price breaks above the usual neckline resistance ($205 at SOL) and rises above the high distance between the trough of the cup and the neckline.

That puts SOL's cup-and-handle breakout target for 2025–2026 at around $4,500, a more than 2,000% increase from current price levels.

However, it is important to consider the historical possibilities of the cup-and-handle design.

For example, in a study by veteran analyst Thomas Bulkowski, who analyzed 913 cup-and-hand trades in the stock market, he found that only 61 percent of these setups hit the expected target.

In other words, the cup-and-handle doesn't always guarantee full upward motion.

Pot-half “altseason” may increase SOL value.

Additional upside signals for Solana come from the prospect of an altcoin season (or altseason) that historically follows Bitcoin's halving events.

Related: 3 Key Metrics Point to ‘Only Time' in Altcoins – Analysts

For example, two months after the May 2020 Bitcoin (BTC) halving, the altcoin market rallied sideways, and has since rallied more than 1,950%. At the same time, the price of SOL increased by more than 49,360 percent.

A similar altcoin market boom occurred after the Bitcoin halving in 2016, although Solana did not exist at the time.

Historically, after Bitcoin halving events occur, traders often shift their focus from Bitcoin to altcoins.

Once Bitcoin is collected, the potential for additional high percentage profits may seem limited, especially for traders looking for large profits. As a result, attention has turned to altcoins – smaller market capitalization assets that are more volatile but can deliver higher percentage returns during bullish phases.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.