Ahead of the US Federal Reserve meeting, the cryptocurrency market is facing slight volatility, particularly affecting assets like Ethereum and Solana.
Increase in Volatility in the Cryptocurrency Market
The cryptocurrency market is showing slight volatility leading up to the Federal Reserve meeting. In particular, Ethereum (ETH) is currently trading near the $4,525 mark, reflecting a 3% drop. This has also put pressure on various altcoins, including Solana (SOL), which has decreased by 4% today, trimming its weekly gains to around 10%.
Bullish Structure of Solana and the Cup and Handle Pattern
Despite recent fluctuations, a powerful bullish structure is unfolding on the Solana chart. The weekly chart displays one of the most recognizable continuation patterns—Cup and Handle. The "cup" began forming after the 2021 bull run peak when SOL hit around $253. Following this, there was a prolonged decline that ended by late 2022, when the price reached approximately $8. Since then, the price has been gradually recovering, culminating in a rounded bottom by late 2024.
Future Prospects for Solana and Potential Breakout
At the current $236 level, Solana is just a step away from a potential breakout. If buyers can decisively push above the $263 neckline, it would confirm the Cup and Handle breakout and pave the way for a sharp rally. Technical projections indicate a breakout target near the $500 zone, representing over 111% upside from today’s price.
With a strong bullish structure now in play, all eyes are on Solana as it approaches its significant breakout moment that could alter its market position.
