Solana appears poised for a bullish breakout to $2,700 if it breaks above the neckline of a major cup and handle pattern, according to an analyst.
In a July 12 post on X, pseudonymous crypto analyst Martinez, who has over 140,000 followers, identified a long-term cup-and-handle formation that has been taking shape since mid-2021.
The pattern, widely regarded as a bullish continuation signal, features a rounded bottom (the “cup”) followed by a brief consolidation (the “handle”) and typically precedes a breakout above the neckline, the level of horizontal resistance defined by the cup’s rim.
According to the shared price chart, Solana (SOL) dropped from a high of around $250 in November 2021 to a cycle low of $9.88 in December 2022. It then gradually recovered, returning to a similar peak by November 2024, completing the cup portion of the pattern.
Since then, a gradual recovery into late 2024 and subsequent price consolidation have formed the handle. The neckline of this formation now sits just above $170, a level Solana is rapidly approaching.
Martinez emphasized that a decisive weekly close above this resistance could trigger a significant bullish breakout.
Using Fibonacci extension levels, the initial target post-breakout is set at $295, representing a 76% gain from current levels, while longer-term targets range as high as $787, $1,314, and even $2,744, based on historical precedents of similar patterns.
However, failure to breach $170 could lead to a pullback toward key support levels near $136 or potentially $100, both of which have historically served as accumulation zones.
Notably, last week marked a strong bullish stretch for Solana, reinforcing the likelihood of a continued upward trajectory for the altcoin.
Open interest in Solana’s futures market has climbed near its all-time high, indicating heightened trader participation and growing conviction around future price appreciation. At the same time, the weighted funding rate has remained positive for five consecutive days, a sign that long positions continue to dominate.
The total stablecoin supply on the Solana blockchain has also increased from $10.5 billion at the beginning of July to $11.4 billion, an 8.5% rise, according to DeFiLlama data. This influx suggests rising liquidity, which could support further trading activity and ecosystem expansion.
Last week, Solana also demonstrated operational resilience as Pump.fun’s token sale generated $448 million on-chain via the network in just 12 minutes. For market participants, it served as tangible proof of Solana’s high-throughput performance, helping sustain the upward momentum in sentiment.
Additionally, Solana-based memecoins such as BONK, TRUMP, PENGU, and FARTCOIN have recorded notable gains in recent sessions, benefiting from Bitcoin’s surge to new all-time highs. As Bitcoin remains in price discovery mode, capital rotation into high-beta altcoins like Solana is likely to continue, further reinforcing upward price pressure.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
