As Christmas approaches, Solana price has gained momentum as the token shows bullish sentiment in the cryptocurrency market. Following Bitcoin’s hovering above $105K, SOL is capable of continuing its upward move. Analysts are keen to see if the $400 target can be confirmed after the cup-and-handle breakout format was confirmed.
Is Solana Price Ready to $400 After the Cup & Handle Breakout?
Analyst shared an X post dissecting Solana’s recent price action, which has sparked a bullish breakout from a “Cup and Handle” pattern. As the analyst explained, Solana price has seemingly retested the neckline of this technical formation and now has an intermediate price target of $400.
The bullish continuation signal, often seen in technical analysis is the Cup and Handle pattern. That occurs when an asset bottoms out in a rounded shape (the ‘cup’) and then consolidates or pulls back a bit (the ‘handle’). This patterns signifies that price keeps accumulating and starting to move up when the price breaks the neckline resistance.
Is SOL Price Poisoned For More Surge?
As Bitcoin hits a record $105k, Solana price is still on the bullish wave.Following the lead, other top coins like Ethereum (ETH), SHIB, and Binance Coin (BNB) saw a surge in the past 24 hours, and it reflected the crypto market wide uptrends.
The latest SOL price is trading at $219 with a slight surge of 0.41% as of December 16, 2024. After a week of consolidation, Solana showed resilience, maintaining stability around the $220 mark. In the last 24 hours, SOL experienced a low of $216 and climbed to a high of $227, signaling positive movement despite fluctuations.
The Relative Strength Index (RSI) is currently hovering near 45, reflecting neutral momentum. The MACD has dipped below the signal line, showing a slight bearish tilt in the short term.
SOL is hovering near a critical level at $225, and market participants are closely watching for a breakout. If Solana price prediction manages to breach this resistance, it could pave the way for a retest of its $263 ATH achieved on November 23.
A successful surge above this level would signal strong bullish momentum, potentially driving SOL toward the significant $400 mark.
On the flip side, a failure to overcome this resistance may lead to a pullback, with the $200 support zone offering key downside protection.
The derivatives market for Solana SOL experienced the rise, implying more action and confidence of investors in the ecosystem. This rise points to stronger participation in SOL derivatives trading, reflected in the trading volume, which increased. In the past week, open interest has also seen a surge. The increase is also due to more active contracts which is a further indicator to increased investor interest.
Solana’s upward momentum will depend on it breaking through some critical resistance levels. Having a firm market stance and a technical breakout, SOL may rise to $400.
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