It seems that we can expect something very special for Solana (SOL), the fourth largest cryptocurrency in terms of market capitalization. According to renowned analyst Ali Martinez, who shares his insights via his account Ali_Charts on X, Solana’s price could skyrocket. With a current price of around $225, SOL, based on a classic cup and handle pattern, could be on its way to $4,000.
Imagine a price chart that makes a “U” shape after a drop, that’s the cup. Then comes a smaller drop, the handle, which then causes the price to rise again. This pattern is one of the most reliable signs that the price is about to rise significantly – a bullish signal.
Solana has shown a remarkable recovery since the lows of the 2022 bear market, following the fall of FTX, a major player in the Solana ecosystem. From less than $10 to the current level, that’s an increase of more than 220% since the beginning of this year. The reason? An explosion of activity in Solana’s DeFi ecosystem, largely driven by the memecoin hype.
Looking at the data from Artemis, we see that the number of daily active addresses on Solana has exploded from about 600,000 to a peak above 9 million, before stabilizing around 6 million. This means that daily transactions have increased significantly, from about 25,000 to now 50,000.
In addition, the total value locked in the Solana network (TVL) has gone from less than $1 billion in December 2023 to an impressive $9 billion now. Traders are moving their funds to Solana, hoping to get a piece of the action and a slice of the SOL price increase.
Be prepared that Solana may well become one of the biggest winners of this market cycle. With a technical indicator like the cup and handle pattern, combined with the current growth in network activity and TVL, the future for Solana looks very bright. But as always, do your own research and invest responsibly. The crypto landscape is unpredictable and full of surprises.
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