Solana (SOL) is generating significant interest among traders due to its various technical patterns exhibited on its monthly chart. Currently, the price sits around $225, with a 24-hour trading volume of $7.3 billion, marking a 1% increase within the last day and over the past week.

Cup and Handle Pattern Develops on Monthly Chart

A monthly chart shared by Lark Davis illustrates a potential cup and handle pattern on SOL. This formation spans from the peak in 2021, through the low in 2022, and into the current handle phase. The price range between $270 and $301 is pivotal; a breach above this level may signal a stronger upward movement.

Employing Fibonacci analysis, the 1.618 extension suggests a price target near $425, while a second target, determined by the 2.618 level, approaches $624. These targets are derived from historical price actions and are typically utilized to track breakout zones. The $425 target corresponds with the 1.618 projection noted by Davis.

Cup and Handle Chart Source: Lark Davis/X

MACD and RSI Indicators Indicate Momentum

The monthly MACD has shown a crossover, indicating the leading line is above the signal line, a configuration often associated with building momentum on long-term charts. This pattern often appears during transitional periods in trends.

Another chart from CryptoJack indicates an ascending triangle with SOL challenging horizontal resistance; this formation comprises higher lows and stable highs near $380. Notably, the monthly RSI has also crossed above its signal line, with CryptoJack stating:

“SOL is poised for an explosion. The combination of the ascending triangle and RSI golden cross suggests a bullish trend. The breakout could be substantial.”

This pattern requires validation through closing above the identified resistance.

ETF Filing Enhances Market Sentiment

This week, Bitwise updated its Solana ETF filing, instituting an annual fee of 0.20% while adding a staking feature. Bloomberg ETF analyst Eric Balchunas remarked:

“They probably anticipated this would eventually happen, so they decided to proceed now.” This move is considered a bold maneuver in an increasingly competitive landscape, with the ETF awaiting approval from the US Securities and Exchange Commission. Traders are monitoring how this will influence SOL’s volume and market sentiment.

Additionally, Jupiter, a decentralized exchange built on Solana, has announced its plans to introduce a new stablecoin, JupUSD, by the year’s end, which will facilitate its trading, lending, and derivatives services.