Solana (SOL) has been caught up in the crypto current, swung back and forth by recent market volatility. After an impressive recovery in early 2024, SOL fell 13% last week, leaving investors wondering what’s next.
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Technical analyst Patel believes he may have charted a course for the future of high-speed blockchain, and it involves a refreshing drink. Examining the weekly SOL/USDT chart, Patel identifies a classic “Cup and Handle” pattern, a bullish indicator that resembles, well, a cup and its handle.
Foamy past, firm fist: a recipe for an escape?
The “cup” portion of the pattern, according to Patel, spans from mid-2021 to mid-2022, encompassing Solana’s meteoric rise and subsequent crash. The current consolidation phase forms the “grip”, a period in which the price stabilizes after the initial parabolic movement.
For SOL bulls, the main hurdle lies in breaking through the resistance zone around $200-$225, a level that has historically acted as a psychological barrier. A successful breach of this resistance could be the first sip of a bullish resurgence.
#SOLANA $1000 Script 🚀$SOL pic.twitter.com/s7KipEbDTd
-Crypto Patel (@CryptoPatel) June 22, 2024
$520 or $1,042: Patel’s Ambitious Price Targets
Patel’s analysis goes beyond immediate resistance, outlining two potential price targets for SOL in the medium and long term. The first target, TP1, sits at $520, a level that would revisit previous highs and signify a significant recovery.
But Patel doesn’t stop there. Its second target, TP2, raises eyebrows at an impressive $1,042, reflecting an extremely bullish long-term view. However, reaching these lofty heights depends on fully completing the cable formation.
This could involve a new phase of consolidation and a potential pullback, a necessary evil to gain momentum for a powerful breakout.
Can SOL weather the short-term storm?
While Patel’s analysis paints an optimistic long-term picture, the short-term forecast for SOL is a bit cloudier. Current market indicators suggest a bearish trend, with Solana trading below its 100-day simple moving average (SMA). The Relative Strength Index (RSI) contributes to the bearish sentiment, hovering below 50% and flirting with oversold territory.
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In the immediate future, SOL could face a potential downside scenario, with some analysts predicting a drop towards the $118 support level, or even as low as $99. However, there is always a chance of a reversal. If the tide turns, SOL could potentially surpass the $140 resistance level, aiming for higher targets such as $160 and $188.
Patel’s analysis serves as a strategic roadmap for investors navigating the choppy waters of the cryptocurrency market. While SOL may encounter some turbulence in the short term, the long-term outlook remains optimistic, depending on crucial resistance levels being broken and upward momentum maintained.
Featured image from Lookphotos, chart from TradingView