Solana Targets $262 as Analyst Spots Cup and Handle Bull Pattern

Solana bounces back to $172 as traders set their sights on $262. A breakout from a rounding bottom pattern and strong futures market data are fueling bullish momentum.

Solana’s move above the $170 mark signals a strong resurgence in buying pressure. Bulls are now eyeing the key psychological level of $200. Could a breakout in SOL lead to a new all-time high?

Solana Price Analysis Targets $262

Solana is currently trading at $172, up 1.75% today after a 7% decline over the past two days. As SOL recovers from two consecutive red candles, it hints at a major breakout rally, forming a rounding bottom pattern.

Solana has made a U-shaped recovery following a 60% drop from $262 to $105 between January 18 and April 8. With a 64% gain over the past 34 days, SOL now challenges the 50% Fibonacci retracement level at $183 — the midpoint of the previous decline.

This 50% level also acts as the neckline of the rounding bottom pattern on the daily chart. A breakout above this level could push SOL toward the 100% Fibonacci level at $262, a projected 52% increase.

The RSI has begun to rise after dipping below the 14-day SMA from overbought territory, supporting the bullish outlook. Meanwhile, the 50-day and 100-day EMAs are on the verge of a bullish crossover, which may serve as a buy signal.

On the downside, a breakdown below the 200-day EMA would invalidate the reversal pattern, potentially triggering a decline to the $150 level.

Analyst Predicts Parabolic Rise Above $200

Echoing this bullish sentiment, crypto analyst Ali Martinez recently identified a cup and handle pattern in Solana’s weekly chart. According to Martinez, the handle is forming as a short-term descending channel, with resistance near the $200 level.

If SOL can break above this psychological barrier, the analyst predicts a parabolic move into triple-digit territory.

70% of Binance Traders Expect Breakout Rally

Amid rising anticipation for a breakout, derivatives market activity around Solana has surged. According to Coinglass, Solana’s future open interest has reached $6.83 billion, while the OI-weighted funding rate remains positive at 0.0023%.

Binance traders appear highly optimistic about Solana’s price trajectory. The long-to-short ratio for the SOLUSDT pair, based on user accounts, stands at 70.45% long. The overall long-to-short ratio is 2.38, indicating a strong bullish bias. This trader’s optimism could fuel a leverage-driven rally in Solana’s price.