Analyst Ali Martinez identified a cup and handle pattern on Solana’s chart, suggesting SOL could make a significant breakout to $4,000.
Solana has attracted attention with its recent price movements. Amid broader market declines on Tuesday, the cryptocurrency established support at $204. However, it quickly cleared the resistance levels at $210 and $212, rising to $219 at the time of writing.
Despite the recent price action, Solana shares are still down 8.5% over the past week. While current price movements may seem unremarkable, a technical pattern identified by analyst Ali Martinez signals the potential for massive growth in the future.
Promising prospects for Solana
Specifically, Martinez noticed a bullish cup-and-handle pattern on Solana’s monthly chart. This pattern began with a peak in 2022, followed by a sharp decline to a trough in early 2023 and a steady recovery until 2024.
The handle of the pattern forming the consolidation zone ranged from $120 to $250.
Martinez suggests that if Solana breaks out of this consolidation zone, the price could soar. Using Fibonacci retracements, Martinez projects potential price targets of $670.43, $2,236.35 and even $4,000.
For Solana to hit the $4,000 target from its current price of $218, it would need to rise approximately 1,734.86%.
Solana network growth forecasts
In a separate case, the Bitwise investment team predicted significant improvements for Solana by 2025. They point out that moving serious projects to Solana could push its price up to $750.
According to the report, early adoption by projects like Render reflects growing interest in the network’s capabilities beyond its current dominance in meme coins. The report states that Solana’s momentum will accelerate as more projects join its ecosystem.
This forecast is consistent with the demonstrated potential for improved regulation and a more favorable policy climate, making digital assets more attractive and diverse in use cases.
Bid rates show confidence in the network
On-chain data This further highlights the active participation on the network, with Solana staking activity expected to recover significantly in 2024. By December 2024, the number of tokens staked exceeded 400 million, which means a noticeable increase in confidence in staking.
Moreover, the dollar value of staked tokens reflected this growth, approaching $100 billion as prices recovered. Despite market fluctuations, the stability of staking activity from mid-2022 to early 2023 indicates stable holder participation.
