Solana (SOL) is popular among traders as its chart shows a cup and handle formation confirming a bullish breakout.
This technical framework was developed in the second half of 2021, while the previous trading cycle was still active.
The price of SOL fell below $10 in the next bear market. In 2023, it recovered and rose to its current value.
SOL is currently trading at $216. This is 6% higher than the price 7 days ago and 38% higher than the price a week ago.
Experts believe that this chart could push the price of the token to between $400 and $500. This is seen as a significant improvement.
In the past, the cup and handle pattern on long-term charts has always served as a bullish signal for the markets.
SOL bets exceed $81 billion
The betting figures also show that confidence in the Solana market has not been damaged, and is even stronger than before.
According to Dune analytics, the total value of SOL staking exceeds $81 billion, with approximately 407 million SOL tokens held in staking contracts.
Staking reduces the circulation of tokens and removes them from the market for a fixed period – a measure that helps stabilize the market.
Therefore, this suggests that SOL can keep prices stable and rising. Moreover, activity in the Solana ecosystem has increased, primarily in the memecoin space.
Experts noted that daily trading volumes of memcoins on the Solana network have grown to $1 billion. The emergence of memcoins shows that the options for using tokens on the Solana network have expanded.
It is generally believed that higher turnover is directly proportional to improved blockchain performance, which supports optimism regarding token price movements.
Short and long term prospects for Solana
Short-term trends suggest a more conservative future for Solana. Moving to the hourly chart, technical analysts have pointed out a bullish channel that indicates an uptrend towards $260 in the short term.
This target corresponds to the pennant breakout seen on shorter time horizons. Additionally, another analyst took note of Solana’s weekly results, noting that they looked extremely bullish.
He also highlighted that the daily volume of meme coins on the Solana network exceeds $1 billion, highlighting Solana as his top pick for this round.
$SOL looks very bullish on the weekly chart! 🚀We’ll send it to ATH!
When the volume of $SOL memes reaches 1 billion+ per day, it’s $SOL time 🚀 🚀
SOLANA will remain my favorite in this cycle 🤝 https://t.co/9AglKTo6tr pic.twitter.com/fgcpFn7osf
— Bitcoin Buddha (@Bitcoin_Buddah) November 14, 2024
On a broader scale, long-term charts suggest that SOL could retest the ATH and rise towards the $400-$500 area. Experts attribute this likelihood to technical education and increased ecosystem activity.
Thus, Solana is one of the important assets for those tracking the crypto space. Additionally, at press time, SOL was trading at $214.57 after rising 38.27% over the month.
Unsurprisingly, Solana is among the most popular digital assets by market capitalization, which stands at $101.29 billion.
Although SOL has seen its market capitalization decline by 1.11% over the past 24 hours, it remains popular among investors.
In terms of trading volume, SOL’s 24-hour trading volume stands at $6.63 billion, down 40.30%, possibly consolidating after an upward move.
