In my previous idea, I anticipated a liquidity hunt below the $140 level, and price action played out exactly as expected. SOL wicked below this key support zone, triggering stop-losses and inducing panic selling — classic behavior before a major reversal. Following this sweep, price quickly reclaimed the range, breaking out of the downward channel, and is now retesting a bullish break of a textbook cup-and-handle pattern, signaling a potential trend continuation to the upside.
📊 Technical Setup
Cup and Handle formation is evident, with the "handle" forming as a downward-sloping channel now being challenged.
Price reclaimed the $140 demand zone post-sweep and is now retesting.
Target zones: $180 → $220 → $260 based on historical resistance levels and measured move projections.
📉 Invalidation Level
A daily close below $120 (marked as the Invalidation Zone) would invalidate this setup and suggest bulls have lost control.
🌐 Macro Perspective
Fed Rate Cut anticipation and cooling inflation data are helping risk-on assets like crypto regain momentum.
SOL staking ETF launching this week, while SOL spot ETF approval imminent.
Solana's growing DeFi ecosystem, along with high TPS performance and low fees, continues to attract developer and user activity. SOL remains a top candidate for sector outperformance in a bullish H2 crypto cycle.
📌 Conclusion
With market structure turning favorable and strong macro tailwinds, SOL may be gearing up for a major breakout rally. Watch the $160 level closely — a decisive break and hold above could confirm the next leg higher.
📊 Technical Setup
Cup and Handle formation is evident, with the "handle" forming as a downward-sloping channel now being challenged.
Price reclaimed the $140 demand zone post-sweep and is now retesting.
Target zones: $180 → $220 → $260 based on historical resistance levels and measured move projections.
📉 Invalidation Level
A daily close below $120 (marked as the Invalidation Zone) would invalidate this setup and suggest bulls have lost control.
🌐 Macro Perspective
Fed Rate Cut anticipation and cooling inflation data are helping risk-on assets like crypto regain momentum.
SOL staking ETF launching this week, while SOL spot ETF approval imminent.
Solana's growing DeFi ecosystem, along with high TPS performance and low fees, continues to attract developer and user activity. SOL remains a top candidate for sector outperformance in a bullish H2 crypto cycle.
📌 Conclusion
With market structure turning favorable and strong macro tailwinds, SOL may be gearing up for a major breakout rally. Watch the $160 level closely — a decisive break and hold above could confirm the next leg higher.
Note
Solana's rally today was relatively muted compared to Bitcoin's and Ethereum's rallies. Solana is also far below its May $185 high, compared to Bitcoin and Ethereum being close to their May highs.
Remember what happened when ETH was undervalued, trading at $1800 in early May? It skyrocketed nearly 50% to $2600.
We could very well see a similar phenomenon unfold as SOL currently is undervalued. All we need is a macro trigger. (XRP-SEC case settlement? ETF approval?)
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Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.