Key Takeaways
- A monthly cup and handle chart pattern is developing on SOL following its recovery from 2022 cycle lows
- Price action has remained confined within the $78–$98 range since February, with $88 serving as the central pivot
- Technical analyst Ali Charts highlights that a confirmed daily close above $98 may trigger moves toward $107 and $117
- SOL recently exited a multi-year descending channel and is now stabilizing between $92–$95
- Critical support zones include $92, $89, and $78 — a break below $78 could compromise the bullish thesis
Solana continues to defend critical support levels as a significant monthly cup and handle formation takes shape. The technical setup remains favorable, though bulls need to hold current support zones and reclaim the $98 resistance to validate further upside.
Since the start of February, SOL has been confined to a defined trading range with support anchored at $78 and resistance capped at $98. Technical analyst Ali Charts mapped out these key boundaries, noting that $88 has emerged as the central pivot within this zone.
SOL recently attempted to breach the $98 resistance level but faced immediate rejection. Ali Charts observed that following this rejection, price has bounced back, indicating that another test of the upper boundary may be in the works.
According to Ali Charts, a confirmed daily close above the $98 level would likely propel SOL toward an initial target of $107, followed by a secondary objective at $117. Should $98 continue to act as formidable resistance, a retreat toward $88 or even a full retracement to $78 remains within the realm of possibility.
Large-Scale Cup and Handle Formation Emerges
On the monthly timeframe, analyst Bitcoinsensus has identified a substantial cup and handle pattern taking shape. Following its peak in 2021, SOL declined sharply, establishing a bottom throughout 2022 and 2023, before staging a recovery back toward previous resistance levels.
The handle portion is currently forming as SOL undergoes a sideways consolidation phase. Price is hovering near the lower boundary of this handle, making this trendline a critical area for buyers to defend in order to maintain the pattern’s integrity.
The formation has not yet been validated. SOL must break above the upper trendline of the handle and push through the broader resistance zone near the 2021 highs to fully activate this bullish setup.
Long-Term Descending Channel Broken
Analyst CryptoXLARG highlighted that SOL has successfully broken out from a prolonged descending channel structure. Following the breakout, price is now consolidating within the $92–$95 zone as it establishes a foundation for a potential trend reversal.
A decisive move above $95 would activate upside targets at $102.70, $106.50, and $118.26. In a scenario where momentum accelerates significantly, CryptoXLARG projects macro extension targets reaching as high as $143 and $163.
Analyst Bitcoin Meraklısı pointed out that SOL reached its initial upside target following a breakout rally of nearly 10%, but encountered selling pressure at that level. A pullback toward $92 would still align with a healthy corrective structure.
The immediate support floor is established at $92. Should that level fail, the next downside targets are $89 and $78. A breakdown below $78 would negate the current bullish framework and signal a potential shift in market structure.
Analyst Moe observed that SOL has reclaimed its position above a long-term descending trendline extending from the 2021 peak, indicating that the broader downtrend structure may be weakening. SOL remains trading above this broken trendline, reinforcing the shift in technical momentum.
