Solana Price Prediction: Could the 'Cup and Handle' Pattern Take SOL to New Heights?

SOL has once again become the center of attention as the bullish cup and handle pattern, which has lasted for many years, boosts increasing excitement around ambitious Solana price predictions. This formation has gained new relevance with a strong performance recently - up 55% since the beginning of April - making Solana one of the standout bullish coins among major altcoins. However, the broader economic instability is casting a shadow. As the US-China trade war begins to impact consumer prices and analysts during the summer recession, sentiment could quickly turn sour. Solana has shown vulnerability to macroeconomic fluctuations, decreasing over 65% since the U.S. trade war began just four months ago. Price prediction for Solana: Will SOL reach a new high? Analyst Ali Martinez from Popular X has drawn attention to the "textbook perfect" cup and handle pattern following a strong recovery from the lower support level of the descending channel forming the handle.

The reversal of the month has proven the integrity of the model and brought the price of Solana to a breakout, approaching the upper resistance level. A successful breakthrough will target a high of around $450, marking a potential increase of 200% compared to the current price, although Martinez hinted at a potential increase of up to four digits. This setup seems increasingly reasonable as the technical indicators tend to be bullish. The relative strength index (RSI) is trending bullish, currently approaching the neutral mark of 50—usually a sign that buying pressure is increasing. Moreover, the MACD line is approaching a bullish golden cross, on the verge of crossing above the signal line. This formation on the weekly timeframe often coincides with major trend changes. The final stage corresponds to the post-election protests and the inauguration ceremony—explosive phases that drive the price of Solana to new highs. However, Solana's recent move has been rejected at the resistance level of $160 - a crucial barrier that needs to be overcome to confirm the breakout. Breaking above this level could trigger a bullish move towards the next important resistance level at 190 dollars. However, the failure may cause a correction, heading towards the next important support level at around 125 dollars - a cause for concern due to the lurking economic instability.