The cryptocurrency market is gradually losing its bullish momentum, driven by the U.S. election boost. Amid the low volatility weekend, the Bitcoin price witnessed selling pressure at $77,000, signaling a post-rally pullback. However, crypto analysts believe the Solana price is poised for a major breakout from a bullish reversal pattern amid the TVL hike.
By press time, the SOL price had traded at $200.5 with an intraday gain of 0.45. According to Coingecko, the asset’s market cap surged to $94.58 Billion while the trading volume is at $4.3 Billion.
Analyst Predicts Solana Breakout Next Week, Targeting $400 Rally
This week, the cryptocurrency market experienced a massive inflow following Donald Trump’s victory in the 47th presidential election. As Bitcoin price hit a new high of $77,200, most major altcoins recorded a renewed recovery.
Thus, the Solana price records a sharp surge from $158 to $200, registering 28.8%. Crypto analyst Pentoshi highlights this recovery with a massive green candle in the weekly time frame chart, with a potential breakout coming next week.
The chart attached by the analyst illustrates the formation of a bullish reversal pattern known as the Cup and Handle. The chart setup typically begins with a rounded “cup,” where the price gradually recovers after a decline, forming a U-shaped curve. This is followed by the “handle,” a brief consolidation phase or slight pullback.
The Solana price prediction hints the buyers are 5.2% away from challenging the pattern’s neckline resistance at $210. A sustained breakout from the resistance will accelerate the recovery movement and end a multi-year accumulation.
The post-breakout rally could drive the SOL price 114% up to hit the $435 high.
SOL’s Growing TVL Highlights DeFi Revival and Price Momentum
According to DefiLlama, the SOL’s total volume locked (TVL) witnessed a renewed recovery from $5.94 Billion to $7.15 Billion, registering a 20% jump. The rise highlights an influx of capital into Solana-based decentralized finance (DeFi) protocols, suggesting increased user activity and trust in its network.
Generally, the price recovery backed by the TVL surge indicates a sustained recovery with the potential to drive an extended rally.
On the contrary, if Solana price experienced a renewed selling pressure at $210, the sellers could counterattack and continue the sideways trend.
Frequently Asked Questions (FAQs)
Solana’s TVL saw a 20% increase, rising from $5.94 billion to $7.15 billion, signaling growing user activity and renewed investor trust in Solana-based DeFi protocols
Analysts highlight a Cup and Handle bullish reversal pattern in Solana’s price chart, signaling a potential breakout above the $210 resistance
If Solana breaks above the $210 resistance level, analysts predict a rally of up to 114%, potentially driving the SOL price toward $400
Sahil Mahadik
Sahil is a dedicated full-time trader with over three years of experience in the financial markets. Armed with a strong grasp of technical analysis, he keeps a vigilant eye on the daily price movements of top assets and indices. Drawn by his fascination with financial instruments, Sahil enthusiastically embraced the emerging realm of cryptocurrency, where he continues to explore opportunities driven by his passion for trading
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/solana-price-400-rally-as-analyst-predict-next-week/
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