Is Solana Set For A Bullish Breakout? Analysts Eye $500

Solana (SOL) is trending among traders as its chart shows Cup and Handle formation, confirming the bullish breakout.

This technical structure was developed in the latter part of 2021 when the previous trading cycle was still active.

SOL price went under $10 in the following bear market. It bounced back in 2023 and rose to its present value.

Currently, SOL is trading at $216. That is 6% higher than the price 7 days ago, and 38% higher then the price from a week ago.

Experts believe this chart pattern may take the token to between $400 and $500 levels. This is s seen as a significant improvement.

The cup and handle formation on long-term charts has always worked as a bullish signal for the markets in the past.

Source: TradingView

Staked SOL Value Exceeds $81 Billion

Staking metrics also show that the confidence in Solana’s market has not been eroded, in fact, It is stronger than before.

According to Dune analytics, the total value of the staked SOL is greater than $81 Billion with roughly 407 million SOL tokens held in staking contracts.

Staking lessens the circulation of tokens and removes them from the market for a fixed period, a measure that helps to stabilize the market.

Consequently, it suggests that SOL can support price stability and growth. More so, there has been increased activity on the Solana ecosystem, primarily in the memecoin space.

Experts highlighted that the daily trading volumes of Solana network memecoins have risen to $1 Billion. The emergence of memecoins shows that use cases for tokens in the Solana network have broadened.

A higher turnover is generally considered to be directly proportional to the improved blockchain performance, which supports the optimism with regards to the token’s price movement.

Short-Term and Long-Term Perspectives on Solana

Short-term trends suggest a more conservative future for Solana. Moving to the hourly chart, technical analysts pointed out a bullish channel, which indicates an uptrend towards $260 in the shorter term.

This target corresponds with a pennant breakout noticed at shorter time horizons. Further, another analyst brought attention to Solana’s weekly performance pointing out that it looks extremely bullish.

He also highlighted that meme coins on the Solana network are clocking over $1 billion in daily volume, emphasizing Solana as his top pick for this round.

On a wider scale, long-term charts suggest SOL may retest its ATH and rise to the $400-$500 area. Experts attribute this likelihood to the technical formation and increased ecosystem activity.

Therefore, Solana is one of the important assets for those who track crypto space. Additionally, at press time, SOL price has been trading at $214.57 after experiencing growth of 38.27% in the month.

Unsurprisingly, Solana is among the most popular digital assets by market capitalization, which stands at $101.29 Billion.

Although SOL has shown a 1.11% decline in market cap over the last 24 hours, it remains popular among investors.

In terms of trading volume, SOL trade volume within the 24 hours period is at $6.63 billion, down 40.30%, possibly consolidating after the upward movement.