$320's easy pickings for SOL this run but can it hit $400?
The chart illustrates a strong technical setup for Solana (SOL/USDT), showing a Cup and Handle formation alongside a fractally repeating pattern with hidden divergences in the RSI. Here’s a closer look at the critical elements and price projections:
1. Fractal Pattern & Hidden Divergence
• At the beginning of the chart, there’s a fractal pattern that led to a parabolic rise in price during the 2021 bull market.
• The hidden divergence seen in the RSI at that time highlighted a strong bullish momentum, with price making higher lows while the RSI made lower lows. This bullish signal preceded a significant price increase, reinforcing the fractal’s reliability.
2. Cup & Handle Formation
• The most notable pattern is the Cup and Handle structure, which is a highly reliable bullish continuation pattern. This is a textbook formation where the price consolidates in a rounded bottom (cup) before a smaller consolidation (handle).
• Currently, the price is emerging from the handle, and if this breakout confirms, it could result in a large upward movement.
3. Hidden Divergence (Again)
• In the recent price action, there’s another hidden divergence in the RSI, similar to the previous fractal. This is a strong bullish signal, suggesting the current price movement may follow a similar path as the earlier parabolic rise.
4. Fibonacci Extensions & Price Projections
• Fibonacci retracement levels provide key price targets:
• 90% to ATH at $260.04: This level marks the approach to Solana’s previous all-time high, which could act as significant resistance.
• 140% to new ATH at $326.66: This is the projected price target for the full realization of the Cup and Handle breakout.
• 200% to Cup & Handle target at $400+: The ultimate bullish target lies around $400, based on Fibonacci 1.618 extensions, aligning with a major upside projection if the breakout sustains.
5. Price Projections
• Short-Term Outlook: The price is currently testing the breakout zone from the handle. If confirmed, we could see a quick move toward $260 (previous ATH).
• Medium-Term Outlook: Breaking past the ATH will set the stage for the next significant resistance at $326.66 (140% extension).
• Long-Term Outlook: If bullish momentum continues and the fractal plays out, a $400+ target (200% extension) is achievable in a major bull run scenario.
Conclusion
The Cup and Handle pattern combined with the hidden RSI divergence and fractals suggests a high-probability bullish scenario for Solana. The key levels to watch are $260, $326, and ultimately $400+. As always, confirmation of breakout volume and broader market trends will be crucial for sustaining these bullish targets.
1. Fractal Pattern & Hidden Divergence
• At the beginning of the chart, there’s a fractal pattern that led to a parabolic rise in price during the 2021 bull market.
• The hidden divergence seen in the RSI at that time highlighted a strong bullish momentum, with price making higher lows while the RSI made lower lows. This bullish signal preceded a significant price increase, reinforcing the fractal’s reliability.
2. Cup & Handle Formation
• The most notable pattern is the Cup and Handle structure, which is a highly reliable bullish continuation pattern. This is a textbook formation where the price consolidates in a rounded bottom (cup) before a smaller consolidation (handle).
• Currently, the price is emerging from the handle, and if this breakout confirms, it could result in a large upward movement.
3. Hidden Divergence (Again)
• In the recent price action, there’s another hidden divergence in the RSI, similar to the previous fractal. This is a strong bullish signal, suggesting the current price movement may follow a similar path as the earlier parabolic rise.
4. Fibonacci Extensions & Price Projections
• Fibonacci retracement levels provide key price targets:
• 90% to ATH at $260.04: This level marks the approach to Solana’s previous all-time high, which could act as significant resistance.
• 140% to new ATH at $326.66: This is the projected price target for the full realization of the Cup and Handle breakout.
• 200% to Cup & Handle target at $400+: The ultimate bullish target lies around $400, based on Fibonacci 1.618 extensions, aligning with a major upside projection if the breakout sustains.
5. Price Projections
• Short-Term Outlook: The price is currently testing the breakout zone from the handle. If confirmed, we could see a quick move toward $260 (previous ATH).
• Medium-Term Outlook: Breaking past the ATH will set the stage for the next significant resistance at $326.66 (140% extension).
• Long-Term Outlook: If bullish momentum continues and the fractal plays out, a $400+ target (200% extension) is achievable in a major bull run scenario.
Conclusion
The Cup and Handle pattern combined with the hidden RSI divergence and fractals suggests a high-probability bullish scenario for Solana. The key levels to watch are $260, $326, and ultimately $400+. As always, confirmation of breakout volume and broader market trends will be crucial for sustaining these bullish targets.
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