Solana (SOL) has exhibited a significant technical breakout, surpassing the $179.97 level identified as the neckline of a long-term cup and handle pattern. This breakout signals renewed bullish momentum for the cryptocurrency.
The pattern, forming since late 2021, suggests potential for further upward price movement. Key immediate resistance is now seen near the $200 psychological level. Should SOL successfully breach this barrier, technical analysis points to potential upside targets at $215 and $240.
Supporting the bullish case, technical indicators show strengthening momentum. The Relative Strength Index (RSI) reading of 59.78 indicates growing buying pressure without entering overbought territory. A bullish crossover on the Moving Average Convergence Divergence (MACD) indicator further reinforces the positive outlook.
The major resistance level remains the cup rim at $295.11. A confirmed break above this point could unlock significantly higher targets aligned with the pattern’s measured move, potentially extending towards $787.43 based on Fibonacci extension levels.
However, failure to overcome the critical $190-$200 resistance zone could trigger profit-taking. In such a scenario, SOL might retrace towards support levels in the $160-$170 range.