Peter Smith
Solana might be gearing up for a massive rally to $2,700 if it breaks above the $170 resistance level. Crypto analyst Martinez spotted a huge cup and handle pattern that's been forming since 2021, and it's looking pretty bullish for SOL.
SOL Shows Classic Bullish Pattern After 2021 Crash
Crypto analyst Martinez, who's got over 140,000 followers on X, posted about this interesting setup on July 12. He's identified what looks like a textbook cup and handle formation that's been developing for nearly three years.
Here's what happened: Solana crashed hard from around $250 in November 2021 down to just $9.88 in December 2022. That's a brutal 96% drop that wiped out most investors. But then something interesting happened - SOL slowly climbed back up through 2023 and 2024, eventually hitting similar highs by November 2024. This created the "cup" part of the pattern.
The "handle" formed recently through some sideways price action and consolidation. Now the key level to watch is $170 - that's the neckline of this whole formation. If SOL breaks above this level with conviction, especially on a weekly close, it could trigger the breakout Martinez is talking about.
Using Fibonacci extensions, the first target would be $295 (about 76% upside from current levels). But the really wild targets are much higher: $787, $1,314, and even $2,744. Of course, if SOL fails to break $170, it could drop back to support around $136 or even $100.
Strong Fundamentals Back Up SOL Price Potential
The technical picture isn't the only thing looking good for Solana. The fundamentals are pretty solid too. Last week was particularly strong for SOL, and several metrics suggest the momentum might continue.
Futures open interest is near all-time highs, which means traders are really engaged and betting on bigger moves ahead. The funding rate has been positive for five straight days, showing that more people are betting on SOL going up than down.
There's also more money flowing into the Solana ecosystem. Stablecoin supply on the network jumped from $10.5 billion to $11.4 billion in July - that's 8.5% growth according to DeFiLlama. More stablecoins usually mean more trading activity and growth.
Solana proved its worth recently when Pump.fun managed to process $448 million in token sales in just 12 minutes. That's some serious network performance that shows SOL can handle heavy traffic without breaking a sweat.
Memecoin Rally Adds Extra Fuel to SOL
Even Solana-based memecoins are having a moment. BONK, TRUMP, PENGU, and FARTCOIN have all been pumping lately, riding Bitcoin's wave to new all-time highs. When Bitcoin is in price discovery mode like this, money tends to flow into higher-risk altcoins like Solana.
All of this creates a pretty compelling case for SOL potentially breaking that $170 level. Whether it actually hits Martinez's wild $2,700 target remains to be seen, but the setup is definitely worth watching.
Peter Smith
