Solana price today continues its climb. It sits above the important resistance point at $150, and is in the fourth straight week of gains. It has jumped by 61% from its April low, and one analyst predicts that it is on the verge of a strong comeback as Ethereum struggles to hit the psychological point at $2,000.
Solana Price Chart Pattern Points to a Surge to $500
Technical chart patterns points to a strong Solana price surge. In a recent X post, Ali Martinez noted that it had formed a “textbook perfect cup and handle pattern” on the weekly chart. This is a crucial continuation sign that leads to a strong surge, especially when it moves above the cup’s upper side.
The weekly chart below confirms this claim. It shows that the upper side of the cup was at $260, its highest point in November 2021. It was also the highest swing in November last year. However, it also formed a false breakout that pushed it to the year-to-date high of nearly $300. Solana price is in the process of forming the handle section of this pattern.
One way of measuring the price target of an asset in a C&H pattern is to measure its depth, and then the same distance from the cup’s upper side. In this case, the upper side is at $260, while the lower side is at $8.35 or 96%.
Now, extrapolating this target from $260 brings the SOL price forecast to $510. This means that the coin may surge by 240% from the current level. Such a move would bring the diluted market cap of Solana to $302 billion. This valuation is achievable in a strong bull run.
SOL price has key catalysts that could significantly enhance its long-term performance. The SEC may approve a spot SOL ETF this year, leading to substantial demand from Wall Street investors.
Further, the market cap of all stablecoins in the Solana ecosystem has jumped to $13 billion, a record high. That is a sign that more investors are interacting with its network. Solana may also benefit from the ongoing Solana meme coin surge, which has led to a higher volume in its DEX platforms.
SOL May Flip Ethereum if the Prediction Works
The value of SOL is surging as Ethereum remains below $2,000. Worse, the weekly chart shows that the coin has formed a triple-top pattern at $4,080. It remains below the neckline of this pattern at $2,118, its lowest level in August last year.
The Solana price target of a triple top is established by measuring the distance from the upper high to the neckline. One then measures the same distance from the neckline. In Ethereum’s case, this distance is about 48%. Measuring that level from the neckline brings the price target to $1078.
A drop to that target would bring Ethereum’s market cap from the current $216 billion to $129 billion. Such a move would make Solana a bigger cryptocurrency than Ethereum by a big margin.
The caveat in all this is that the Solana and Ethereum prices forecast will take time to form since they are in the weekly chart.
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