Solana could be on the verge of a major breakout to $2,700 if it clears the neckline of a long-forming cup and handle pattern, according to crypto analyst Martinez.
In a July 12 post on X, Martinez — who boasts over 140,000 followers — highlighted the bullish pattern, which has been developing since mid-2021. The cup and handle formation, often seen as a strong continuation signal, consists of a rounded “cup” followed by a brief consolidation or pullback — the “handle” — and typically precedes a surge past the neckline, the key resistance at the rim of the cup.
According to the price chart shared by analyst Martinez, Solana plunged from a high of around $250 in November 2021 to a cycle low of $9.88 in December 2022. Since then, the token has gradually rebounded, climbing back to similar highs by November 2024—completing the “cup” portion of the bullish formation.
Following this recovery, Solana entered a period of consolidation through late 2024, forming the “handle” of the pattern. The neckline — a key resistance level — now lies just above $170, a threshold the token is quickly approaching.
Martinez noted that a decisive weekly close above this neckline could confirm the breakout and spark a powerful upward move.
Based on Fibonacci extension levels, the analyst set an initial price target at $295, marking a 76% gain from current levels. Longer-term targets include $787, $1,314, and potentially as high as $2,744 — all drawn from historical performance of similar chart patterns.
However, if Solana fails to break above the critical $170 resistance, a pullback could be in store, with key support levels near $136 and potentially $100. Both zones have historically acted as accumulation areas during previous market corrections.
Still, the broader outlook remains bullish. Last week, Solana posted a strong rally, bolstering confidence in its upward momentum.
Open interest in Solana’s futures market has surged close to its all-time high, reflecting increased trader participation and growing conviction in the asset’s future price potential. Meanwhile, the weighted funding rate has remained positive for five consecutive days, signaling that long positions continue to dominate the market.
On-chain metrics also show rising strength. The total stablecoin supply on the Solana network has grown from $10.5 billion at the start of July to $11.4 billion — an 8.5% increase, according to DeFiLlama. This uptick in liquidity could fuel further trading activity and broader ecosystem growth.
Adding to the bullish narrative, Solana demonstrated its high-throughput capability last week as Pump.fun facilitated a massive $448 million token sale on-chain in just 12 minutes. This event showcased the network’s performance under pressure, reinforcing positive sentiment among investors.
Meanwhile, Solana-based memecoins like BONK, TRUMP, PENGU, and FARTCOIN have seen notable gains recently, buoyed by Bitcoin’s rally to new all-time highs. As BTC continues in price discovery mode, capital rotation into high-beta altcoins like Solana appears likely, potentially amplifying buying pressure in the near term.
