Solana (SOL), the sixth-largest cryptocurrency by market capitalization, may be forming a textbook cup-and-handle pattern, a bullish technical setup that could propel prices to unprecedented heights. According to crypto analyst Ali, if this pattern plays out as expected, Solana could surge to an astonishing $3,800—an increase of 2,940% from its current price of around $125.
#Solana $SOL is shaping up into a textbook cup-and-handle pattern! If confirmed, this setup could propel it toward $3,800. pic.twitter.com/4ZctNPwijp
— Ali (@ali_charts) March 14, 2025
Ali shared a weekly SOL/USD chart illustrating a rounded bottom forming the “cup” and a slight downward drift creating the “handle,” a setup historically known for preceding explosive breakouts. While this long-term projection seems ambitious, bullish sentiment remains strong as institutional interest and broader crypto adoption continue to rise.
Solana’s Short-Term Challenges
Despite the optimistic long-term outlook, Solana has struggled in recent days. The cryptocurrency hit a yearly low of $112 on Monday, extending a five-day losing streak. At its current price of $125, SOL remains significantly below its January highs, mirroring the broader market downturn over the past two months.
Adding to traders’ concerns, Solana’s daily chart recently flashed a bearish “death cross,” a technical event where the 50-day moving average falls below the 200-day moving average. Historically, this pattern signals a potential downtrend, suggesting that if Solana fails to hold its critical support between $125 and $110, prices could drop as low as $80.
Institutional Interest and Futures Launch
While short-term risks persist, institutional investors remain keen on Solana. The Chicago Mercantile Exchange (CME) is set to launch SOL futures contracts on March 17, following Coinbase’s recent introduction of Solana futures. This move marks a significant milestone in the mainstream adoption of Solana, offering traders a regulated avenue to gain exposure to the asset.
Also Read: Solana [SOL] Eyes Recovery: Can SIMD-228’s Inflation Cut Spark a Price Rebound?
Solana’s price action presents a tale of two perspectives: a short-term struggle against bearish signals and a long-term bullish setup. While the cup-and-handle pattern hints at an explosive rally, SOL must first overcome near-term resistance and regain momentum. Investors will be closely watching whether the bullish scenario unfolds or if further declines test key support levels.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. Coin Brief is not responsible for any financial losses.
