Solana Faces 18% Decline, Analyst Predicts Potential Surge To $1,042 Despite Volatility

Solana (SOL) has been experiencing increased volatility, reflecting the turmoil in the cryptocurrency market as a whole. It recently recorded a significant drop of 18% in one month. The drop is part of a larger correction phase following an impressive rally earlier this year. Market movements are influenced by macroeconomic factors, regulatory developments and shifts in investor sentiment.

Against this backdrop, crypto analyst Patel Offers Detailed chart analysis predicting Solana’s potential path. Patel identifies a classic cup and handle pattern on the weekly SOL/USDT chart. This pattern typically indicates bullish continuation, with the formation of a cup occurring between mid-2021 and mid-2022, followed by a consolidation phase that forms a handle.

A key resistance zone for Solana is near the neckline, roughly between $200 and $225. This level has historically acted as a psychological barrier, but breaking through it could pave the way for further upside.

Patel’s analysis provides two primary price targets for SOL over the medium to long term. The first target (TP1) is set at $520, reflecting past highs and signaling significant upside potential. The second target (TP2) is more ambitious at around $1,042, highlighting Patel’s optimistic long-term outlook.

SOL needs to complete a handle formation to reach these targets, which may include a consolidation phase and a pullback. This phase is crucial as it will test the support levels and build momentum for the upward breakout. A breakout above the neckline resistance will be a key milestone towards TP1, followed by sustained momentum towards TP2 if market conditions remain favorable.

Solana’s current market situation

As of the latest update, SOL is trading at $134.32, with a market cap of over $62 billion. Short-term indicators are pointing to bearish sentiment, with SOL trading below its 100-day simple moving average (SMA). The Relative Strength Index (RSI) is indicating the possibility of further decline, as it has fallen below the 50% mark and headed towards oversold territory.

Going forward, SOL faces an immediate challenge with a predicted move towards the support levels of $118 and possibly $99 in a downside scenario. Conversely, a reversal scenario could see SOL break through $140 and target the resistance levels of $160, $188 and potentially reach $205 to establish a new high.

Patel’s analysis emphasizes patience and a long-term perspective amid short-term volatility, providing investors with a strategic roadmap. While SOL may experience fluctuations, the overall bullish trend remains intact and hinges on a key breakout of resistance levels and sustained upward momentum.

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