Can Solana (SOL) Rally to $4,000? Here’s What the Charts Say

Over the last 4 days, Solana [SOL] has registered a strong upswing on the charts. During this period, the altcoin broke out of its $200 resistance

Over the last 4 days, Solana [SOL] has seen a strong uptick on the charts. During this period, the altcoin broke out of its $200 resistance. In fact, SOL climbed from a low of $187 to a high of $219 on the charts.

At press time, Solana was trading at $216. This placed the altcoin’s price up by 4.35% on the daily charts. A glance at SOL’s weekly charts showed a 17.56% hike.

This price pump, needless to say, had the Solana community eyeing a massive rally. According to popular crypto analyst Ali Martinez, for instance, a potential rally to $4k was now on the cards.

Martinez’s analysis highlighted the formation of a cup and handle pattern on SOL’s charts, hinting at a potential rally to $4,000.

When a cup and handle pattern forms, it signifies that buyers are regaining control after a period of consolidation, hinting at a breakout.

This pattern is usually used to identify a continuation of bullish momentum. Hence, if this pattern does pan out, SOL could see an exponential surge to higher levels.

Now, while Ali’s analysis did seem to offer a promising outlook, it was crucial to assess what other metrics had to say on the matter.

For instance, AMBCrypto’s analysis highlighted strong upward momentum in SOL’s price, thanks to a hike in buying pressure.

This uptick in buying activity was spotted among both retail traders and whales. In fact, over the last few days, whales have been actively accumulating SOL.

To put things into perspective, one whale withdrew 132,300 SOL tokens, valued at $28.31 million, from Binance.

Usually, when whales turn to accumulation, it signifies bullish sentiment as they anticipate the price to climb further on the charts.

This bullishness was further supported by a greater number of accounts taking long positions in the market.

In fact, on Binance, SOL’s long/short accounts revealed that around 72% of accounts had taken long positions. Now, when longs are high, it suggests that more traders are bullish and anticipate the price to increase.

This increased demand for long positions was further supported by a positive DyDx funding rate. A positive DyDx funding rate alludes to market bullishness as investors are willing to pay a premium fee and hold their positions during market downturns.

To sum it up, Solana is currently seeing strong bullish sentiments from both retailers and whales. These favorable market conditions are bound to propel SOL to attempt the $228 resistance level.

A breakout from this level will pave the way for the altcoin to reach $245. However, if sellers re-enter the market, Solana will drop to $194. Hence, a rally to $4k seems farfetched in the short-term.