Solana (SOL) has broken out of a key technical formation that hints at the decentralized finance (DeFi) asset hitting a record high, with the potential to rally 630%.
Technical indicators suggest the asset has moved above the bullish cup and handle formation, which now points to SOL reaching $1,315, according to crypto analyst Ali Martinez in an X post on August 9.
A cup and handle is a bullish chart pattern where a rounded bottom (cup) signals accumulation, followed by a short dip or sideways move (handle) before a breakout that often continues the uptrend, with targets based on the cup’s depth.
In Solana’s case, the cup began forming after the token’s steep decline from its 2021 highs, bottoming out around $8 in late 2022. Over the following months, SOL steadily recovered, completing the cup by mid-2024 and then forming the handle, a descending channel that capped the price below $200.
The recent breakout above this handle has activated the bullish target, with Fibonacci extension levels supporting the possibility of a run toward $1,315. The analysis highlighted key intermediate resistance levels at $380, $752, and $1,048 before reaching the projected target.
Currently trading near $180, Solana would need to rally over 630% to hit the $1,315 goal. If it were to reach this target, the asset would command a market cap of about $710 billion, potentially ranking as the second-largest cryptocurrency if Ethereum saw minimal growth over the same period.
Solana price analysis
By press time, SOL was trading at $179.37, down about 1.7% in the last 24 hours. Over the past week, however, the asset has gained 11%.
Notably, at its current price, Solana is well above its 50-day SMA of $166.04 and 200-day SMA of $156.12, signaling strong bullish momentum. The 14-day RSI at 57.16 shows the asset is in a healthy range, leaving room for further gains without immediate overbought risk.
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