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    Cryptocurrency

    Solana’s stock fell by 15%. Can it recover despite high expectations?

    msmarkBy No Comments3 Mins Read

    Solana (SOL) has been caught up in the cryptocurrency tide, flipping back and forth due to recent market volatility. After an impressive rally earlier in 2024, SOL has done just that decreased by 13% Over the past week, leaving investors wondering what lies ahead.

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    Technical analyst Patel believes he may have charted a course for a high-speed blockchain future, and it includes a refreshing beverage. Examining the weekly chart of SOL/USDT, Patel identified a classic “cup and handle” pattern, a bullish indicator that resembles a cup and its handle.

    Foamy past, firm handle: a recipe for a breakout?

    The “cup” part of the pattern, according to Patel, runs from mid-2021 to mid-2022, and includes Solana’s meteoric rise and subsequent fall. The current consolidation phase forms the “handle”, which is the period in which the price stabilizes after the initial parabolic movement.

    For SOL bulls, the main hurdle is clearing the $200-$225 resistance zone, a level that has historically served as a psychological barrier. A successful breakout of this resistance could be the first sip of a bullish return.

    $520 or $1,042: Ambitious price targets for Battelle

    Patel’s analysis ventures beyond immediate resistance, identifying two potential price targets for SOL in the medium to long term. The first target, TP1, is at $520, a level that would revisit previous highs and indicate a significant upside.

    But Patel doesn’t stop there. His second target, TP2, raises eyebrows at an impressive $1,042, reflecting a very optimistic long-term view. However, reaching these great heights depends on completing the entire handle formation.

    This may involve an additional consolidation phase and a possible pullback, which is a necessary evil to gather momentum for a strong breakout.

    Solana’s market cap currently stands at $58 billion. Schedule: TradingView.com

    Can SOL weather the short-term storm?

    While Patel’s analysis paints a rosy picture over the long term, the short-term outlook for SOL is a bit more ambiguous. Current market indicators are pointing to a hidden downtrend, with Solana trading below the 100-day simple moving average (SMA). The Relative Strength Index (RSI) is adding to the bearish sentiment, hovering below the 50% level and approaching oversold territory.

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    In the near future, SOL may face a potential bearish scenario, with some analysts predicting a drop towards the $118 support level, or even as low as $99. However, there is always a chance of a reversal. If things turn around, SOL will likely break above the $140 resistance level, setting its sights on higher targets like $160 and $188.

    Patel’s analysis serves as a strategic roadmap for investors navigating the choppy waters of the cryptocurrency market. While SOL may face some short-term turbulence, the long-term outlook remains bullish, contingent on breaking critical resistance levels and maintaining upward momentum.

    Featured image from Lookphotos, chart from TradingView

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