Reason to trust Strict editorial policy that focuses on accuracy, relevance, and impartiality Created by industry experts and meticulously reviewed The highest standards in reporting and publishing How Our News is Made Strict editorial policy that focuses on accuracy, relevance, and impartiality Ad discliamer Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio. Solana(SOL) is flashing a powerful bullish setup as it forms a classic cup and handle pattern on the monthly chart. With the 1.618 Fibonacci target sitting near $425 and the monthly MACD gearing up for a golden cross, momentum is building fast. As speculation around a potential Solana ETF approval heats up, traders are eyeing what could be the start of a major breakout rally. Cup And Handle Formation Signals A Major Bullish Setup
Lark Davis, a well-known crypto analyst, recently sharedan optimistic outlook on SOL, highlighting a significant technical formation that could set the stage for a major rally. According to Davis, Solana is currently developing a classic cup and handle pattern on its monthly chart. This setup often signals the potential for a strong bullish breakout once the pattern completes. Related Reading Solana (SOL) Declines Again – Is This A Dip Worth Buying For Recovery? 1 day ago
He further explained that the 1.618 Fibonacci extension level, which often serves as a key target during large upward moves, sits around $425. Adding to the bullish case, Davis noted that the monthly MACD indicatoris also forming a golden cross. This powerful technical signal typically marks the beginning of a sustained uptrend. Key setup points to massive rally for SOL | Source: Chart from Lark Davis on X
Finally, with growing anticipation surrounding a potential Solana ETF approval, the analyst believes Solana could be on the verge of an exciting and rapid upward move, one that might redefine its position in the crypto marketif the pattern unfolds as expected. Swift Recovery Pushes Solana Back Into Profit Territory
Crypto VIP Signal, in a recent update, highlighted a notable shift in SOL market structure following a sharp move below the $200 level. The drop triggered a wave of liquidations among high-leverage long positions, causing weak hands to be shaken out of the market. This correction, however, proved short-lived as buying pressure quickly returned, showcasing strong supportand renewed bullish momentum. Related Reading Solana (SOL) Attempts Recovery – Yet Lacking Momentum Could Stall Bullish Breakout 1 week ago
Following the dip, SOL rebounded impressively, allowing long positions to secure over 16% in profit from their initial entry points. Looking ahead, the analyst noted that Solana could be gearing up for a move toward the $250 resistance level, which stands as the next major hurdle for the bulls. A successful break and close above this level could open the door for additional gains and confirm the continuation of the broader uptrend.
In terms of strategy, Crypto VIP Signal advised traders to maintain their long positions while implementing a stop-loss at breakeven to protect profits from any unexpected volatility. With bullish momentum returning to the market, careful position management could ensure traders remain well-positioned for the next potential leg higher. SOL trading at $221 on the 1D chart | Source: SOLUSDT on Tradingview.com Featured image from Adobe Stock, chart from Tradingview.com