A remarkable technical structure stands out in the Solana price in the monthly period. Analysts emphasize that a large cup handle formation has formed and the price is currently in a critical support zone of this structure. Following a decline starting from the peak in January 2021, Solana floor prices formed a rounded bottom throughout 2022 and 2023, with a recovery towards previous resistance levels in 2021. It is stated that the price structure in this process indicates a long-term recovery scenario.
Cup Handle Formation and Critical Supports on Monthly Chart
In the chart shared by analysts, it can be seen that the cup formation is marked with a white curve. It is reported that after moving upwards for a while, Solana is now trading at the bottom of the potential handle formation shown by the blue channel. Following a sharp correction in the Kulp region, the price’s movement in a horizontal band stands out as a part of the formation.
Currently Solana is moving close to the lower region of this handle structure. The blue trend line stands out as the most critical support line in the short term. It is evaluated that if the buying side defends this area, the cup handle structure will continue to remain active.
However, for the technical structure to be fully confirmed on the monthly chart, Solana needs to break through the upper trend line and then the broader resistance zone in volume. If this movement does not occur, even though there is a possible formation on the chart, there can be no strong upward momentum.
Analysts evaluated, “If Solana loses the lower trend line in the handle area, then the strength of the cup handle formation may weaken significantly and indicate a deepening beyond the chart expectation.”
As of now, the price continues its course within the handle. It is stated that in order for a new buying movement to start in the short term, this critical support area must be protected and then the resistance line must be broken upwards.
Long Term Structure and Main Support Area Following
On the other hand, Solana’s weekly chart also points to a strong recovery process. According to updated data shared by analyst Moe, the price is now above an important support band. In the weekly period, the lower red band stands out as support and the upper red band stands out as an important resistance level.
There is also a black downward trend line starting from the 2021 peak on the chart. Solana is currently trading above this long-term downtrend line. This development shows that the large-scale downward trend is weakening.
Moe argues that despite short-term fluctuations, the long-term outlook remains unchanged. From a technical perspective, Solana appears to maintain strong support and remains above the broken long-term trend line. In the projection prepared by analysts, it is predicted that the price may first find strength once again from support through the green projection and then move to the upper resistance band.
Moe states that “Despite the price volatility on the daily chart, Solana’s long-term position has not changed” and states that maintaining the support line is critical for a possible new upward move.
According to the technical analysis structure, if Solana remains below the lower support band, the long-term recovery formation may be disrupted. For now, the price is still moving above the main support and whether a new move begins will depend on whether this level is maintained.
