Solana has joined the ongoing crypto rally, which started last week amid the release of a favorable inflation report and the upcoming Trump’s inauguration.
Today, senior crypto trader Ali Martinez shared an interesting perspective on Solana’s future movement, signaling massive bullishness soon.
SOL breaks out of cup-and-handle pattern
According to data shared by Martinez, SOL has broken out of a cup and handle pattern, indicating a bullish momentum ahead.
The pattern looks like a cup followed by a downtrend or a handle, normally indicating a buying opportunity. It normally signals a potential for a long-term bullish breakout. As a result, SOL is set to experience a massive rally as confirmed by Martinez that its current price action has broken out of the pattern.
Solana endured a prolonged consolidation trend that started in late December. However, the token began seeing some mild uptrends last week on Wednesday after crypto investors and traders reacted positively to the latest US inflation report.
By breaking out of this pattern, Solana has set up a stage for a robust positive performance in the coming months. Martinez said this breakout could lead SOL to see a potential upside target of $4,700, which represents a 1,965% increase from the current price level.
What’s next for SOL?
SOL is currently trading at $240.27, reflecting an 11.6% increase over the previous day.
Its trading volume has been up 73.20%, highlighting a recent increase in market activity. The fear and greed index for Solana stands at 81, showing investors’ strong confidence in the asset.
SOL’s upsurge coincides with the wider crypto market’s resurgence, which started last week. One of the major factors contributing to this uptrend is the increased optimism about crypto-friendly executive orders that President Trump is anticipated to sign once he assumes office next week.
The excitement in the broader crypto market heightened on Friday, January 17, following a report that Trump may create a crypto advisory council he had promised in the past. The presence of such a council would potentially give the virtual asset industry an important voice within the Trump administration.
Also, the announcement about a national Bitcoin strategic reserve is part of the expected executive orders that the president is anticipated to talk about.
While Trump’s potential crypto-friendly administration seems to support the industry, some experts claim that the market may not feel the full effect immediately. Altcoins, including Solana, could allegedly benefit from friendly and clear legislation, as they have been more exposed to SEC lawsuits under Biden’s administration.
