Solana (SOL) has the potential to surge by more than 2,000% in the coming months, according to chart analysis. The cryptocurrency, often referred to as the “Ethereum killer,” has already experienced a significant increase of over 2,000% since hitting a low of around $10 in November 2022. Analyst Peter Brandt has identified a cup-and-handle pattern on the weekly chart, indicating a potential breakout. This pattern occurs when the price forms a U-shaped recovery, resembling a cup, followed by a consolidation period known as the handle. The handle signifies a period of uncertainty as traders assess whether the upward trend will continue. Currently, SOL’s price has been consolidating within the $100-200 range since March 2024. If the price breaks above the common neckline resistance at $205, the cup-and-handle breakout target for 2025-2026 could be around $4,500, representing a more than 2,000% increase from the current levels. However, it’s important to note that historical analysis shows that not all cup-and-handle patterns reach their expected targets.
Furthermore, Solana is also benefiting from the expectation of an altcoin season, which typically follows Bitcoin halving events. After the May 2020 Bitcoin halving, the altcoin market consolidated for two months before experiencing significant growth of over 1,950%. During this period, SOL’s price surged by over 49,360%. A similar altcoin market boom took place after the Bitcoin halvings in 2016. Traders often shift their focus from Bitcoin to altcoins after Bitcoin has rallied, as altcoins have the potential to offer higher percentage gains during bullish phases. However, it’s crucial for readers to conduct their own research and consider the risks associated with investments and trading moves.