Solana (SOL) Price Could Surge 70% with Bullish Chart Pattern

Bullish Cup-and-Handle Pattern

A cup-and-handle pattern has formed on the weekly chart of Solana. Essentially, a cup is formed when the price dived and then came back in the shape of U; after that, a consolidation, also called the handle, took place. SOL has oscillated in indecision between $127-$201 since March.

It has to pierce a significant level of resistance, also referred to as the “neckline,” for it to be certain that it has given a signal for the major price blast of the pattern. In the case of SOL, the neckline was positioned at $167, and the altcoin has so far managed to sail through it. If the pattern were anything to go by, the price could surge up to $285- a 70 percent increase from current levels.

Bull Bear Power (BBP) Indicator

Another positive sign is the Bull Bear Power (BBP) indicator, which measures the strength of buyers (bulls) compared to sellers (bears). A positive BBP reading suggests that buyers have the upper hand. Right now, bulls seem to be in control, reinforcing the bullish outlook for Solana.

Growing Institutional Interest

Institutional adoption is another factor supporting Solana’s potential rise. This includes the very large asset management firm VanEck recently adding staking for Solana in its European Exchange Traded Note. The move may indicate that institutional investors are gradually going after Solana, just like they did in the case of Bitcoin and Ethereum.

Short-Term Price Outlook

In the shorter run, Solana has bounced off its support at $155. A slide through this could follow with a correction, but it hasn’t. Instead, SOL is holding steady, indicating that it may be ready to move higher.

The Fibonacci retracement tool also supports this bullish scenario. If buying pressure increases, Solana could climb to the 78.6% Fibonacci retracement level. This would push the price to $176, with the possibility of further gains toward $194.

While this is a high possibility, the only downside risk would be in play if SOL fell below the 61.8% Fibonacci level, as it may then dip down to as low as $142.06, making the bullish prediction less likely.

Key Levels to Watch

Solana’s chart and market indicators suggest a bullish outlook. However, investors should watch key levels closely to gauge whether this rally will continue.