Solana's Cup-and-Handle Chart Pattern Indicates Potential Fall to $140 – Insights
In the rapidly evolving world of cryptocurrency, popular market analyst Ted Pillows has shared his insightful analysis on Solana (SOL), a high-performing blockchain platform. According to Pillows, the approaching altseason is driving bullish sentiment among SOL investors, and his Solana price prediction is based on a forming cup-and-handle pattern on the monthly chart.
The cup-and-handle pattern, a classic bullish continuation pattern, began with a tea cup formation where the price first declined and then gradually recovered, forming a "U" or bowl-shaped curve. At the time of writing, Solana trades at $159.34.
Pillows anticipates an initial correction followed by a strong rally. He expects a 10%-15% short-term drop, with SOL retracing to around $140-$150 before reversing upward. This correction aligns with the cup-and-handle pattern's typical "handle" phase, which precedes a bullish breakout.
However, the bullish reversal will only be confirmed if Solana breaks above the neckline resistance at approximately $235. If this happens, Pillows projects a significant price appreciation potentially reaching as high as $1,000, implying a potential gain of over 500% from current levels.
The long-term bullish outlook is supported by strong network activity and institutional interest, which Pillows cites as fundamentals reinforcing the technical pattern's upside potential. Several asset managers, including Grayscale, VanEck, and Fidelity, have revised their Solana Spot ETF applications with the SEC, indicating ongoing dialogue for a potential approval.
Despite recent price corrections, Solana continues to record high levels of network activity, signalling a substantial level of market interest. However, it's important to note that this forecast balances caution on the near-term dip with optimism about Solana's long-term appreciation based on classic technical analysis and on-chain activity.
This price forecast comes amid a general crypto meltdown during which Solana prices have crashed by over 15% in a week. Solana's current price decline of 3.84% in the past day has resulted in a daily trading volume decline of 37.85%, now valued at $4.98 billion.
In short, Ted Pillows forecasts:
- Short-term price correction to $140-$150 (a 10%-15% drop from current $160–$164 levels).
- Following the dip, a strong rally potentially pushing SOL towards $1,000 in the medium to long term.
- Confirmation of the bullish breakout requires clearing the resistance around $235.
- The cup-and-handle pattern and network fundamentals underpin this optimistic outlook despite near-term risks.
[1] Ted Pillows' X post on August 1, 2022 [2] Solana monthly chart showing cup-and-handle pattern [3] Grayscale Solana Spot ETF application with the SEC [4] VanEck Solana Spot ETF application with the SEC [5] Fidelity Solana Spot ETF application with the SEC
- According to market analyst Ted Pillows' analysis, the approaching altseason is fostering optimism among Solana (SOL) investors, with Pillows predicting a short-term price correction to $140-$150 due to a forming cup-and-handle pattern on the monthly chart.
- The anticipated short-term dip could be followed by a strong rally, potentially propelling Solana towards $1,000 in the medium to long term, a potential gain of over 500% from its current trading price.
- For the bullish reversal to be confirmed, Solana must break above the neckline resistance at approximately $235.
- The upside potential is strengthened by the cup-and-handle pattern and network fundamentals, such as strong network activity and institutional interest demonstrated by applications for Solana Spot ETFs from Grayscale, VanEck, and Fidelity with the SEC.
