- Solana formed a bullish cup-and-handle pattern, testing a crucial supply zone.
- Strong technical indicators and social dominance indicated a higher probability of a bullish breakout.
Solana [SOL] waWe are building a strong bullish setup with a textbook cup and handle pattern on the weekly chart, indicating a possible breakout. At the time of writing, SOL was trading at $238.32, up 1.08% in the past 24 hours.
The price is now testing a critical supply zone, and a successful breakout here could spark a significant upside rally.
Traders and investors are curious to see if SOL can maintain its momentum and break through this resistance.
Is SOL on the verge of an outbreak?
Solana’s weekly chart clearly shows a classic cup-and-handle formation, a bullish pattern that suggests potential upside. The price is approaching a strong supply zone, a crucial resistance point.
A breakout above this zone would likely bring in more buyers, pushing the SOL higher. However, a rejection would result in a withdrawal.
Therefore, traders will closely monitor SOL’s movement here to determine the next price trend.
Source: TradingView
What do the technical indicators say?
Technical indicators further support the bullish outlook. The RSI was at 66.11, indicating solid buying pressure, but still some room before becoming overbought.
Moreover, the MACD stood at 9.22, which strengthened SOL’s uptrend.
These bullish signals suggested that a successful breakout from the supply zone would strengthen these technical indicators, attracting more traders into long positions.
Source: TradingView
Why is social dominance gaining ground?
SOL’s social dominance increased from 4.73% to 5.36% in just one day. This growth reflected increasing engagement and interest on social media platforms.
Such attention often correlates with higher market participation and price momentum.
Therefore, higher social dominance suggests more traders entering the market, which could further fuel SOL’s bullish momentum.
Source: Santiment
How will liquidations affect SOL’s momentum?
Liquidation data indicated strong bullish engagement among traders. SOL saw $44.39k in short liquidations and $1.49 million in long liquidations.
The higher volume of long liquidations indicates that many traders believe in the upward movement of SOL.
Consequently, these liquidations support the likelihood that SOL will break the supply zone and continue on a bullish trajectory.
Source: Coinglass
What does Open Interest reveal about the future of SOL?
Open interest rose 4.04% to reach $6.02 billion. This increase shows significant capital flowing into Solana futures contracts.
A higher Open Interest indicates that more traders are making large investments, which supports price stability and strengthens the bullish trend. This figure increases the chances of a successful breakout above the supply zone.
Source: Coinglass
Read Solana’s [SOL] Price forecast 2024–2025
Solana is on the verge of a crucial breakout, with a bullish cup and handle pattern on the weekly chart.
Therefore, SOL is likely to break through the supply zone, maintain its upward momentum and pave the way for a sustained price rally.
