Solana eyes $4,700 after breaking out of this pattern

Decentralized finance (DeFi) asset Solana (SOL) will likely see an over 1,800% upside based on a bullish technical setup.

Specifically, Solana has broken out of the bullish cup-and-handle pattern, signaling a potential target of $4,700 based on the formation’s historical implications, according to a projection shared by cryptocurrency analyst Ali Martinez in an X post on January 18.

SOL price analysis chart. Source: TradingView/Ali_charts

The cup-and-handle pattern resembles a rounded “cup” followed by a smaller “handle” dip. It signifies a period of consolidation before a breakout, reflecting growing buying pressure after a prolonged correction. When the price breaks above the resistance level at the “rim” of the cup, it often leads to a strong upward move.

In Solana’s case, the breakout occurred after the asset reclaimed the $220 mark, validating the bullish setup.

Notably, although Solana has the potential to rally, the price target can be considered ambitious. It would elevate SOL’s market cap to $2.29 trillion, making it the top digital asset—provided Bitcoin (BTC) sees minimal growth.

The breakout projection comes when Solana is witnessing increased short-term bullish momentum, which aligns with the broader cryptocurrency market. 

These positive sentiments have been heightened by optimism surrounding Donald Trump’s upcoming inauguration on January 20. Reports indicate that, once in office, Trump will likely issue an executive order related to cryptocurrencies.

SOL short-term price target 

For short-term analysis, pseudonymous cryptocurrency trading expert Sheldon The Sniper highlighted in an X post on January 18 that Solana could hit a record high within the $500 to $600 range.

The analysis noted that SOL’s first major target lies at $324, corresponding to the 1.618 Fibonacci extension. A sustained move beyond this level could push SOL toward $416, aligning with the 2.618 Fibonacci extension. 

The next significant level for those eyeing higher gains is $504, marked by the 3.618 extension. Beyond these targets, the analyst suggested Solana could climb into the $500 to $600 range or even higher.

SOL price analysis chart. Source: TradingView

In line with possible high targets for Solana, as reported by Finbold, trading expert Alan Santana projected the token could hit $300 in the coming months based on its bullish technical setup.

Notably, market attention has shifted to Solana after Trump unveiled the TRUMP meme coin built on its network. To this end, due to high withdrawal volumes, Binance temporarily halted SOL withdrawals through the Solana network after the TRUMP launch diverted liquidity from other tokens.

Solana price analysis 

At press time, Solana was trading at $242, having rallied over 10% in the last 24 hours. On the weekly chart, the cryptocurrency has gained 31%.

Solana seven-day price chart. Source: Finbold

Overall, bullish momentum seems to be engulfing Solana, as the asset’s current price remains well above the 50-day Simple Moving Average (SMA) of $210.64 and the 200-day SMA of $174.03.

At the same time, there is room for further growth, as the asset’s 14-day Relative Strength Index (RSI) sits at 60.33, suggesting it is not yet overbought.

Indeed, if the asset experiences any pullback, it could present a buying opportunity, with resistance looming at the $250 mark.

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