Solana Price Rally: ETF Decision & Cup-and-Handle
Solana’s SOL price pulled back from $205 to $186 after $30 million in long liquidations and record $12 billion futures open interest. On-chain data showed bearish divergence and high funding rates, triggering a short-term squeeze. However, the Solana price reclaimed $180 support, forming a golden cross on the daily chart and breaking out of an ascending triangle at $205. On the two-month chart, SOL is carving a rare four-year cup-and-handle pattern with a $250 neckline. A successful breakout could target $4,800–$6,000 for a potential 3,000% rally. Key catalysts include an October 10 decision on a spot SOL ETF and the CLARITY Act, which may bring institutional inflows. Near-term resistance lies at $297.50 (a 54% gain), while support zones are at $185 and $165. If $180 support fails, a deeper correction to $168–$157 is possible. Technical indicators are mixed: RSI hovers around 52 and the MACD shows a death cross. Traders should view the current setup as bullish, provided key supports hold.
Bullish
Despite recent pullbacks driven by liquidations and high funding rates, SOL price has maintained key support levels and formed constructive chart patterns. The golden cross and ascending triangle breakout signal bullish momentum, while the long-term cup-and-handle pattern points to substantial upside potential. Upcoming catalysts like the spot SOL ETF decision and the CLARITY Act could attract institutional capital, reinforcing buying pressure. Short-term resistance and support levels offer clear risk management points, but the overall technical and fundamental landscape suggests a bullish outlook for SOL in both the short and long term.