- •Solana’s monthly chart forms a cup-and-handle pattern, indicating potential long-term momentum toward the $425 Fibonacci extension.
- •Despite a 25% dip from recent highs, Solana maintains its ascending daily channel and trades above its 20-day moving average.
- •The monthly MACD crossover signals a bullish momentum shift, strengthening the technical outlook for a possible rally continuation.
Solana price movement has shown resilience after a sharp correction, maintaining its long-term ascending structure while traders eye a potential major breakout. The cryptocurrency recently experienced a 25% pullback from its high of $253 to a low near $190, where buyers re-entered the market, restoring confidence in the broader trend.
Following the rebound, the Solana price recovered to around $222 and currently trades above the 20-day simple moving average, signaling continued medium-term support. The token remains within its established ascending channel on the daily chart, reflecting a constructive setup despite short-term volatility. Although the latest rally failed to surpass the recent peak near $237, analysts observe steady accumulation, indicating a controlled consolidation phase rather than a trend reversal.
Cup-and-Handle Formation Highlights Long-Term Bullish Structure
On the higher timeframe, Solana’s monthly chart exhibits the early stages of a cup-and-handle formation, a classic bullish continuation pattern. This structure typically signals renewed upward momentum following a period of consolidation. If confirmed, the breakout could align with the 1.618 Fibonacci extension level, positioned around $425, marking a potential multi-month price target.
Technical indicators further reinforce the positive sentiment. The monthly Moving Average Convergence Divergence (MACD) indicator recently formed a golden cross, with the MACD line crossing above the signal line. This crossover indicates a potential transition from a prolonged corrective phase toward renewed bullish momentum. Combined with the sustained price action above major moving averages, these developments strengthen the outlook for a possible medium- to long-term advance.
Outlook Remains Constructive Amid Broader Market Uncertainty
While the near-term focus remains on reclaiming the $253 resistance level, Solana’s structural support and emerging bullish indicators suggest that the asset could be preparing for a broader upward move. If the current momentum holds, technical projections point toward a potential rally targeting the $425 region, marking a significant milestone for Solana’s ongoing recovery.