Solana (SOL) Price is Setting Up for a Major Breakout to a New All-Time High

input: Solana (SOL) price is setting up for a major breakout to a new all-time high in the near future. According to a widely followed independent technical analyst, the so-called Ethereum killer is painting a near perfect cup-and-handle pattern with a price target of around $3,800.

Solana (SOL) price is setting up for a major breakout to a new all-time high in the near future.

According to a widely followed independent technical analyst, the so-called Ethereum killer is painting a near perfect cup-and-handle pattern with a price target of around $3,800.

Solana is currently over 55% below its all-time high of $293.31, which it reached on January 19.

However, analyst Ali Martinez has suggested that the altcoin is on the precipice of a meteoric rise.

In a March 14 X post, Martinez noted that the sixth-largest crypto by market cap might be shaping up into a textbook cup-and-handle pattern on its weekly chart.

A cup-and-handle pattern, named for its unique shape, resembles a teacup, followed by a smaller, downward-drifting handle. It often resolves in a breakout, with the upside target measured by adding the pattern’s maximum height to the breakout point.

A confirmed breakout could have SOL rise toward its cup and handle target of around $3,800, an astronomical 2,930% surge from the current price levels.

“#Solana $SOL is shaping up into a textbook cup-and-handle pattern! If confirmed, this setup could propel it toward $3,800,” Martinez postulated.

Notably, the cup-and-handle pattern is highly regarded in technical analysis due to its reliability. Specifically, the pattern carries a high success rate of 95%, with an average yield of 54% from breakout.

Solana Price Set for 2,930% Breakout as Cup and Handle Forms- Analyst

chart by TradingView

Beyond the bullish technical indicator, factors like the potential spot SOL ETF approval are gaining traction.

As ZyCrypto reported previously, the Chicago Merchantile Group is set to launch SOL futures contracts on March 17. These will be the second regulated Solana futures to hit the US market after Coinbase’s debuted in February. The upcoming listing paves the way for the eventual approval of SOL ETFs.

Solana hopefuls expect SOL ETFs to take off among retail and institutional investors, partly because of the hurdles facing rival smart contract platform Ethereum.

Among major asset managers, Grayscale, Bitwise, Canary, 21Shares, and VanEck have all submitted their applications for spot Solana ETFs to the Securities and Exchange Commission.

Bloomberg Senior ETF Analyst Eric Balchunas has set the odds of the SEC giving spot Solana ETFs the green light at 70%.