Solana Price Forms Rare Pattern: Could SOL Surge 270%?

Solana’s price has faced significant downward pressure in recent months, dropping from a year-to-date high of $295.52 to a low of $112, leading to a dramatic loss in market value. This decline has been part of the broader crypto crash, which has affected the entire industry, bringing its total market cap down to $2.8 trillion. In addition to the market-wide downturn, concerns over Solana’s ecosystem have contributed to its struggles. The Solana network has become increasingly associated with meme coins, many of which have turned out to be rug-pull scams. The market capitalization of these meme coins has significantly decreased, from over $25 billion earlier this year to just $7.7 billion.

Another factor affecting Solana’s price is the large token unlock tied to recent FTX distributions, which has added more tokens into circulation, potentially causing dilution and further downward price pressure. Solana has also seen its market share in the decentralized exchange (DEX) sector erode, with Ethereum surpassing it in total volume handled by DEX protocols.

Despite these challenges, technical indicators suggest that Solana could experience a strong rebound once the current market volatility subsides. A bullish technical formation known as the “cup-and-handle” pattern is starting to form on Solana’s weekly chart. This pattern typically signals a potential price increase. The cup has a depth of about 95%, and if the handle forms correctly and Solana holds above the $100 level, the price could potentially surge by 270%. This surge would bring Solana’s price up to $505, which is a significant increase from its current price levels.

However, it’s important to note that cup-and-handle patterns can take time to complete. In Solana’s case, the cup section has taken several years to form, so a potential 270% price surge could take months, or even years, to materialize. Thus, while the technical setup is promising, the timing of any significant price movement remains uncertain.