$SOL
🚨 More About Solana’s Chart Pattern 🚨
The start of the pattern is a gradual descent into a rounded base that aligns with periods of selling pressure and subsequent accumulation by investors. Buying strength builds on the right side of the cup as it forms and culminates in a test of previous resistance levels.
Like this textbook behavior, Solana’s price structure has a steadily rising price supported by growing trading volumes since mid-2022 and up to 2024.
The currently developing part of the handle is usually a slight pullback or sideways trading range. This is where it swings up and down, but with no change in the longer-term direction.
It could be temporary buying and selling through here in a bearish trend in order to chop . That’s until the bulls try to break out above resistance.
While this would be good enough to form a slight downward-sloping wedge within the handle, it also adds credibility to the setup in Solana’s case. It makes sense on a technical basis when the handle leans downwards, trapping late sellers before a breakout attempt.
The inset chart comparison shows that there was a smaller cup and handle formation from the past market cycle that broke out and rallied successfully. It provides historical support to the pattern’s reliability.