Solana (SOL) is witnessing a new wave of price increase, bolstered by a series of technical signals appearing simultaneously across multiple time frames.
The current market structure suggests that SOL may be nearing a significant breakout zone. Analysts state that the price range from $125 to $175 serves as a key support-resistance corridor, which could shape the next trend of this coin.
As of July 6th, SOL is trading around the $147 mark, having rebounded strongly from the short-term bottom at $125.99 — a signal indicating that buying pressure is gradually returning to the market.
Can the price of Solana break out from the cup and handle pattern?
According to analyst Ali Martinez, Solana (SOL) is gradually completing a large-scale 'cup and handle' pattern on the long-term time frame – a technical structure that often suggests the potential for a continuation of the upward trend. This pattern has been forming for months, starting from the bottom of the cup extending from late 2022 to mid-2023.
As buying pressure returns, the handle of the 'cup' is gradually forming. Martinez noted that the 'handle' is currently developing within a narrow descending price channel – indicating that the final corrective phase may be preparing to end.
The important resistance level, also known as the neckline of the pattern, lies in the $160–$175 range. Currently, SOL is accumulating just below this area, indicating that the market is entering a crucial moment.
If the price of SOL can close above the neckline, along with confirmation from a surge in trading volume, the 'cup and handle' pattern could be activated – opening up opportunities for a strong subsequent price increase.
Martinez also cited similar cases in the past, showing that this pattern has previously led to impressive breakouts. He compares the current structure to a previous 'cup and handle' pattern that resulted in a spike, estimating that if a breakout scenario occurs, the price of SOL could very well reach the target zone of $260–$300, equivalent to the full depth of the 'cup'.
Another important confirming factor is the volume trend. A breakout above $175 accompanied by a significant increase in volume will be a signal to reinforce confidence in the continuation of the upward momentum.
Until then, Solana remains in a strategic accumulation phase – a stepping stone that could determine the next direction for this coin.
The inverse head and shoulders pattern and the double bottom pattern reinforce the reversal trend.
Additionally, according to analysis from BitGuru, in lower time frames, the price of Solana (SOL) is showing strong reversal signals with the emergence of two important technical patterns.
First is the double bottom pattern that has formed around the $141.84 area – serving as a solid support zone. From this level, the price of SOL surged significantly, reflecting a considerable increase in buying pressure. Just above this support area, the inverse head and shoulders pattern has also appeared, with the neckline just below the $155 threshold.
The emergence of two bullish reversal patterns further reinforces the expectation of a potential breakout – especially if SOL surpasses the aforementioned neckline. The double bottom pattern indicates that bears have failed twice in their attempts to push the price below $141.84, while the inverse head and shoulders pattern is a clear signal of a potential trend reversal in the short term.
BitGuru also points to the important low at $125.99 – the lowest point established after the market-wide correction. Price reactions from this area have been very strong, helping SOL rebuild a solid bullish structure. Currently, the recovery is facing obstacles at the resistance zone of $168.49 – a level that was previously rejected in early June.
Since hitting the bottom, the market structure of Solana has shown significant improvement, continuously establishing higher lows. The price is also striving to maintain above the $150 area – particularly the short-term support zone of $148–$151. If this zone continues to hold, the bullish outlook will be reinforced, and the likelihood of SOL returning to challenge the $168.49 level will increase.
Key levels to watch as Solana accumulates.
The price range of $160–$175 continues to serve as a key resistance for Solana, as this is the convergence point of two important technical patterns: the cup and handle and the inverse head and shoulders.
If buying pressure is strong enough to break above this resistance level, SOL could extend its upward trend, with the next targets in the $260–$300 range. However, if the price fails to maintain above the $175 mark, profit-taking pressure could increase again. In that case, losing the support zone at $148 could pull SOL back further, to the $141.84 level or even retest the old low around $125.99.
The short-term trend of Solana will largely depend on price movement in the current accumulation zone — where the next direction is determined to be either a breakout or a correction.
While the market awaits confirmation signals, SOL has made impressive progress, rising 6% in the past 7 days and establishing a short-term peak at $153. The trading volume in the last 24 hours has also surged to $3.96 billion, indicating a strong influx of capital into SOL ahead of expectations for a breakout.