- Solana ($SOL) breaks out of a bullish cup-and-handle pattern, targeting a projected upside of $4,700.
- The 261.8% Fibonacci extension level aligns with the $4,700 projection, highlighting a strong technical target.
- Analysts stress the importance of volume and overall market sentiment in sustaining the breakout and potential price trajectory.
Solana ($SOL) is among the newest tokens that interested the community of analysts and traders after the breakout of a specific pattern. It has created and broken out on the monthly chart a cup-and-handle pattern, a bullish setup. This trend has raised questions of an upside target, with estimates for overall extending to $4700.
In Solana’s case, the cup begins in the fourth quarter of 2022, and the handle rises in mid-2023, then dips in the third quarter of 2023. Fibonacci extensions appear to have been utilized to estimate potential resistance and target zones. The chart highlights the 261.8% Fibonacci extension level at $4,700, reinforcing this as the bullish target.
Projections and Market Sentiment
The breakout has also come with the thoughts of a technical target at $4,700 of the token. This projection corresponds to the height of the cup-and-handle pattern when extending the breakout point. Such targets though are usually vague and always condition it on overall market price movements, volumes and sentiments.
While not visible from the data, the breakouts from cup and handle patterns are normally characterized by a rising trading volume. The analysts may analyze patterns and deduce that the underlying volume probably rose in the phase of the breakout to increase its credibility.
Experts have pointed out that the rest of the cryptocurrency posted a relatively moderate upturn in price movement thus opening the lid for Solana to potentially rise in price directions. Nonetheless, caution is warranted, as unpredictable external factors, including macroeconomic shifts and regulatory developments, could influence price action.
