Bitcoin and Solana are back in the spotlight as technical patterns hint at massive upside potential. With a potential price target of $230,000 for Bitcoin and $4,390 for Solana, investors are revisiting historical chart formations that have previously delivered outsized returns.
A widely followed analyst, known as Trader Tardigrade on social media platform X, has brought renewed focus to the cup and handle formation taking shape on the monthly charts of both Bitcoin and Solana. According to the analyst, Bitcoin has already confirmed its breakout, while Solana is still waiting for a convincing push beyond a critical resistance level.
This technical setup, if validated, could mark the beginning of a new phase of aggressive growth—especially for Solana, which has yet to see the kind of bullish momentum that defined its past rallies.
The cup and handle pattern is a classic formation used by traders to identify potential breakout points following a period of consolidation. On the monthly chart, both Bitcoin and Solana show signs of this pattern, with Bitcoin already having completed its breakout phase a few months earlier.
By measuring the depth of the pattern, Trader Tardigrade estimates that Bitcoin could eventually reach $230,000. Solana, on the other hand, might climb all the way to $4,390—provided it can clear the $200 resistance zone that currently caps its upside.
Interestingly, Solana’s price movement has mirrored Bitcoin’s structure on higher timeframes. However, it remains trapped within a zone of low trading momentum, suggesting that any potential breakout might still take time to develop.
On July 2, the Solana Spot ETF, offered by REX-Osprey, officially went live. The fund recorded a solid $11.4 million in inflows on just its second day, July 3. These early numbers suggest a rising appetite for Solana-based investment products, and the influx of institutional capital could be the catalyst that pushes the token past the $200 mark.
Should SOL manage to break above this level, the cup and handle formation would be confirmed, setting the stage for a much larger rally.
While the long-term outlook from the charts seems promising, Solana’s on-chain metrics paint a more cautious picture.
Data from Glassnode shows that active addresses on the Solana network surged in late 2024, peaking during a massive rally from $146 to $264 in November. That period also saw intense activity in the token’s ecosystem, especially among speculative assets.
However, the number of active users has since declined, indicating a cooling-off period in terms of engagement. This aligns with the broader dip in sentiment and suggests that many traders are still on the sidelines.
At the same time, whale activity has remained relatively stable. Wallets holding over 10,000 SOL grew rapidly in early 2024 and have hovered around the 5,100 mark through 2025. This consistency indicates a level of confidence among large holders who are likely positioning for a long-term accumulation phase.
Looking at the weekly chart, Solana remains in a bearish structure. The price had formed a higher low at $175 in December 2024, but this was broken in February. Since then, attempts to reclaim the level have failed.
In May 2025, SOL rallied again but was rejected at the same $175 level, confirming it as a strong resistance zone. The Relative Strength Index (RSI), a momentum indicator, has also remained below the neutral 50 mark since February, underscoring the lack of bullish control.
Over the past eight weeks, the RSI has hovered close to the 50 level, suggesting that the bearish pressure is fading—but there is still no clear sign of a bullish reversal. Trading volumes have also continued to decline, further reinforcing the idea that the market remains in a consolidation phase.
For Solana to regain momentum, it must climb decisively above $190. A sustained move beyond this level could shift the weekly trend from bearish to bullish and attract fresh inflows from sidelined investors.
Breaking the $200 level would not just be psychologically significant—it would also mark the breakout point from the cup and handle pattern. From there, if volume and investor participation increase, the token could attempt to reach the projected target near $4,390.
Still, traders should remain cautious. A breakout requires not just price movement but also confirmation from volume and broader market sentiment. Without these supporting factors, any attempt to rally could result in another failed breakout.
Bitcoin’s ongoing uptrend provides a macro tailwind for Solana. With BTC already in the midst of a strong bullish cycle, altcoins like SOL often follow suit after a brief lag. The fact that BTC has already completed its cup and handle breakout gives additional credibility to the idea that Solana could be next in line—provided it clears the necessary resistance levels.
If Bitcoin continues its journey toward $230K, the positive momentum could spill over into the altcoin market, accelerating Solana’s breakout in the process.
The charts may be painting a bullish long-term picture for Solana, but the current state of the market still demands caution. Volume is low, momentum is neutral, and investor activity has yet to return to peak levels.
However, with institutional interest rising and historical patterns pointing toward significant upside, Solana could be on the cusp of a major move. The key will be watching for a clean break above $200—backed by strong volume and renewed on-chain participation.
Until then, patience remains essential.
A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5
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