Solana’s (SOL) bullish run on the weekly chart appears to be cooling, but a trading expert believes the decentralized finance (DeFi) asset still has the potential to surge over 1,000%.
As of press time, SOL was trading at $160, down 4% in the last 24 hours. However, the asset has gained 8% over the past week.
Looking ahead, cryptocurrency trading expert Ali Martinez noted that if Solana breaches the $170 resistance level and closes the week above it, the move would confirm a bullish breakout, according to his X post on July 12.
This outlook is supported by the emergence of a cup-and-handle pattern, a historically bullish technical setup.
According to the analysis, Solana began forming the rounded ‘cup’ in mid-2022, which extended through 2023. This was followed by a downward-sloping ‘handle’ forming in early 2025.
Now, with SOL hovering at $160, the price sits just below the key breakout level. A weekly close above $170 would invalidate the handle and confirm the pattern.
Additionally, Fibonacci extension levels suggest that if momentum holds, Solana could advance through several resistance zones, with targets at $250, $470, $850, and ultimately $2,000.
Why Solana is bearish
However, Solana is facing renewed selling pressure amid bearish on-chain signals and rising macroeconomic uncertainty. The latest drop followed a transfer of nearly 190,000 SOL, worth about $31 million, from staking wallets linked to FTX and Alameda Research to BitGo Custody.
While none of the tokens have been sold, a similar move in May 2024 preceded a 7% decline. Markets interpret these custody transfers as potential precursors to liquidation, raising concerns about overhead supply.
The pressure intensified after President Donald Trump’s July 12 tariff announcement, which spurred broader risk aversion across crypto markets. Solana, in particular, remains sensitive to such macro shocks.
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