Solana Price Compressed Like Spring Ahead of Crucial Breakout

Solana's price action has entered its final compression phase as it approaches an important inflection point, according to crypto analyst Peter Brandt. The analysis views Solana's recent five-year moves as a single cup-and-handle structure.

The left side of the cup began at Solana's all-time high in 2021, and the price fell to around $9 during the crypto winter in late 2022, forming a bottom. The outline of the cup was completed as it recovered the 2024 high, followed by about two years of sideways trading that is forming the handle.

Technical indicators also point to a phase of shrinking volatility, with an average true range (ATR) of 17.51 and an average directional index (ADX) of 20.10 below 25. Brandt described this as Solana being compressed like a spring.

The first hurdle for Solana is reaching the upper boundary of the long-term pattern at $240, which would be a retesting of the top of the cup. However, reaching this level alone would not confirm a breakout, and a clear break above the zone of $240 to $260 followed by a hold is needed to judge it as an upside breakout of the pattern formed over five years.

If Solana drops below $80 to $85, it could damage the handle structure and return it to a long-term downtrend. A long-term target was also presented on the premise of an upside breakout, with a price ratio between $9 at the bottom of the cup and $240 at the top being about 26.6 times.