SOL’s Cup and Handle Hints at $425 Target, Bull Run Ahead?

Solana forms a cup and handle with a target of $425 as RSI and MACD turn bullish. ETF update and new stablecoin contribute to the growing momentum.

Solana (SOL) is showing multiple technical patterns on the monthly chart, attracting the attention of traders and market observers.

Meanwhile, the price is around $225, with a 24-hour trading volume of $7.3 billion. It is up 1% in the past day and 1% in 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 extends from the 2021 peak, through the 2022 trough, to the current handle phase. The area between $270 and $301 remains a key zone. If SOL moves above this range, it can cause a strong upward move.

Based on 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 numbers come from historical price movements and are often used to track breakout levels. Davis noted that the $425 level is in line with the 1,618 projection.

MACD and RSI indicators show strength

The monthly MACD shows a crossover, with the main line now above the signal line. This setup is often seen as a sign of building momentum, especially on the long-term charts. It has appeared during periods when trend changes are beginning to take shape.

Another chart from CryptoJack points to an ascending triangle, with SOL pushing against horizontal resistance. The pattern consists 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 resistance.

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Lennaert is cheating noted that SOL recovered from the weekly support near $193, keeping the upper timeframe trend in place. He said $213 could serve as a pullback level, with $232 serving as resistance for further upside potential.

ETF application adds market interest

Bitwise updated its Solana ETF application this week, adding a 0.20% annual fee and a betting feature. Bloomberg ETF analyst Eric Balchunas commented,

“They probably thought it would end there anyway, so do it now.”

He called the move a bold step in a competitive market.

The ETF is still awaiting a decision from the US Securities and Exchange Commission. Traders are looking at how this could impact volume and sentiment around SOL.

Separately, Jupiter, a decentralized exchange built on Solana, announced plans to launch its own stablecoin, JupUSD, by the end of the year. The stablecoin will be used in its trading, credit and derivatives products.