SOL price has risen more than 35% from its June low and formed a rare pattern that signals potential gains in the coming weeks.
Summary
- SOL has risen more than 35% from its June low, forming both a golden cross and a cup-and-handle pattern on the daily chart.
- Public companies, including Bit Mining, Upexi, and DeFi Development Corp, have recently bought additional SOL tokens
- Daily active addresses on the Solana network have spiked in the past 24 hours.
According to data from crypto.news, Solana (SOL) was trading at $176.5 on Aug. 12, up over 9% in the past 30 days and 40% from its year-to-date low. The token’s market cap stood at $95.1 billion as of press time.
Solana price could continue to gain traction amid several bullish developments seen over the past week.
First, public companies have recently ramped up buying Solana to gain a slice of the blockchain’s staking rewards. Among them, Bitcoin mining firm Bit Mining, Upexi, and DeFi Development Corp have all recently disclosed additional token purchases, with the former stating it plans to raise $200 million to $300 million in phases to acquire more Solana and build a dedicated treasury.
Second, Solana seems to be emerging as a growing network for real-world asset tokenization. Most recently, a landmark agreement between the Solana Foundation and R3, whose clients include HSBC, Bank of America, Euroclear, and MAS, aims to integrate the Solana blockchain for asset tokenization.
Third, the network has strong technicals that could support further gains. Daily active addresses have jumped more than 16% in the past day. Such a surge in activity often signals growing user engagement and can reinforce bullish momentum in the weeks ahead.
SOL forms a golden cross
SOL has formed a golden cross on the daily chart. The pattern usually forms when the 50-day simple moving average crosses above the 200-day one, and it is typically viewed as a bullish signal within the crypto trading community.
A similar pattern was spotted last year in October. At the time, SOL rallied nearly 50% in the next three months.
This time around, if the price follows the historical trend, SOL may embark on a similar rally, which could push its price as high as $240.
On top of the previous setup, SOL has also printed a cup-and-handle pattern, with its base at $126.4 and neckline resistance around $187.74.
The distance between the cup’s upper and lower bounds is roughly 48%. Projecting the same move from the upper boundary, SOL eyes a potential rally toward $248, slightly exceeding the target set by the golden cross above.
When a golden cross and a cup-and-handle pattern both appear, it’s essentially two bullish technical signals aligning, which traders often interpret as a high-probability continuation setup for an uptrend.
However, this bullish outlook would be invalidated if the price falls below the closest support area ,which is around $156. This level marks the lower end of the handle.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
