Key Points to Consider
The “cup and handle” pattern seen in Solana’s chart suggests a potential surge in value, possibly reaching $185 or even $220.Data showing short positions being closed and coins leaving exchanges strengthens the case for continued upward momentum.
Solana [SOL] is currently testing the $157 area, a level it recently broke through after moving past a rising trendline earlier this week.
This price behavior aligns with the $178 mark, corresponding to the 1.618 Fibonacci extension, hinting at a possible bullish run.
At the time of this report, Solana’s price hovered around $162.30, just shy of a significant resistance point. This could indicate a temporary pause before further gains.
Therefore, if the price remains above the trendline support, it could fuel a move towards the $185 target, especially if buying activity picks up in the coming days.
Source: X/Ali
Is a Price Increase Imminent?
Solana’s daily chart showcases a classic “cup and handle” pattern. The “cup” reached its lowest point around $131, while the “handle” has been forming just under the $166 resistance level.
This pattern typically signals growing optimism among investors and often precedes significant price jumps when resistance is overcome.
Historically, these “cup and handle” formations often result in rapid price increases, especially when supported by strong buying interest and favorable market conditions.
Should buyers successfully establish $166 as a new support level, SOL could potentially rise to $185, with a further target of $220 based on this pattern.
Source: TradingView
Positive Sentiment from Solana Investors
Solana continues to experience a consistent flow of coins leaving exchanges, with a net outflow of $7.58 million observed on July 13th.
This trend suggests that investors are choosing to hold their SOL outside of exchanges, reducing the available supply for immediate sale.
Typically, coins moving off exchanges is viewed as a signal of long-term investment strategies and a positive outlook among holders.
This pattern reinforces the idea of a broader accumulation phase and could help push prices higher if demand remains consistent.
With fewer tokens available on trading platforms, conditions could become more favorable for further price appreciation.
Source: CoinGlass
Did Forced Buying Accelerate Solana’s Recent Attempt to Rally?
On July 13th, Solana saw a significant increase in the number of short positions being closed, totaling $555K, compared to just $71K in long positions.
This discrepancy suggests that traders betting against Solana were caught off guard, likely contributing to upward price movement as their positions were automatically closed, forcing them to buy back SOL.
Notably, the majority of these forced closures occurred on Binance and Bybit, indicating widespread bearish sentiment across these platforms.
These events often act as triggers for sudden price increases, particularly when they occur near key areas of resistance. If those betting against Solana continue to close their positions, Solana could gain further momentum to break above the $166 level.
Source: CoinGlass
Is Solana Poised for Its Next Significant Move?
Solana’s chart patterns suggest a potential bullish scenario, fueled by a well-defined “cup and handle” formation and sustained support along a key trendline.
The combination of coins consistently leaving exchanges and the forced closure of short positions further strengthens this positive outlook. However, successfully reclaiming the $166 level is crucial to confirm a breakout.
If buyers are successful in turning this area into a reliable support level, Solana could potentially rally towards $185, and possibly even $220. Until that happens, the area between $157 and $166 remains the most important range to watch.