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Solana (SOL) has registered a 0.58% loss in the past day, representing a slight price retracement from its strong weekly performance. Notably, the altcoin gained by nearly 10% in the last seven days as general crypto prices surged, pushing its unit price into the $160 price region. Amidst the present market cool-off, Ali Martinez has tipped Solana to embark on a parabolic rally subject to a particular market condition.
Solana Bulls Eye Breakout As $170 Emerges As Critical Resistance
In an X post on July 12, Martinez outlines a bullish technical analysis on the Solana market, stating the altcoin is at a key price juncture. Using the weekly chart, the analyst has been able to identify a mega cup-and-handle pattern, which usually precedes a major price rally. However, the altcoin faces a critical price resistance at the $170 region.
For context, the cup-and-handle pattern is a popular bullish chart formation that indicates potential for significant price upswings. As seen in the chart below, it resembles the shape of a teacup, commencing with a bearish market, followed by a price recovery of equal magnitude as seen between the start of 2022 and the start of 2025.
During this period, investors saw Solana prices crash from around $250 to a cycle low of $9.88 before experiencing a gradual return to a similar peak, thereby forming the cup pattern. Thereafter, SOL has experienced significant price corrections and rebounds, eventually creating a descending price pattern that represents the handle of this formation.
Notably, the cup-and-handle pattern only translates into a price surge following a decisive price breakout above the formation’s neckline. Following recent gains, Solana finds itself within touching distance of this neckline at the $170 price mark. Martinez explains that a successful weekly close above this major resistance will validate the bullish intentions on Solana, inducing a heavy market demand and paving the path for higher price territories.
Based on the Fibonacci retracement and extension levels on the chart, the initial price target in the event of this breakout is set at $295, instantly matching the current all-time high. However, the historical magnitude of breakouts from cup-and-handle pattern points to lofty price targets, such as $ $787, $1,314, and a max target of $2,744.
However, a rejection at $170 may force Solana to visit lower support levels near $135 or even $100, which has served as a major demand zone in the past.
Solana Price Overview
At the time of writing, Solana is trading at $162.58 with a decline of around 0.58% as earlier stated. Meanwhile, the asset’s daily trading volume is down by 38.77% and valued at $3.72 billion.
