Solana is once again drawing attention as technical indicators and strong on-chain activity point toward a possible long-term recovery. While the token remains well below its previous all-time high near $300, several market watchers believe the current correction resembles earlier cycles that eventually led to major rallies.
SOL Long-term Support Zone Remains In Focus
According to Crypto Patel, there is a long-term plan where the purchase of SOL is between $40 to $60, and selling some of the coins at $500, while the other parts are sold at $1,000.
The plan is that one should be patient during the fluctuations of the market in order to make profits in the future. The two-week SOL/USDT chart displays the drop in Solana price of almost 80% to a primary support level ranging from $41-$56 at key Fibonacci points.
Source: X
It could be a buying point instead of an indicator of a continuous bearish trend. For 2022-2023, such a price action was the start of an extensive bottom that saw a significant bullish move throughout 2023 and 2024.
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Cup and handle Pattern Targets $500
On the other hand, JAVONMARKS noticed a significant cup and handle formation in the 12-day chart of Solana. After recovering from the bearish trend, SOL witnessed a controlled decline, which created a handle formation indicating that the sellers are booking some profits.
Source: X
The key level of resistance ranges from $260 to $280. The break above the mentioned levels with high volume would validate the pattern, indicating an eventual target above $500, thus marking more than 570% returns.
Solana Network Growth Strengthens Long-Term Outlook
Beyond price action, the growth seen on Solana’s blockchain has fundamentals. According to Lochie, the decentralized exchange on the blockchain conducts $12.3 billion worth of weekly spot trading volumes, which is made possible by increased adoption of real assets, token launches, memecoins, yield-paying stablecoins, and assets off the native chain.
This marks the latest achievement in the RWA ecosystem, as its total value now stands at $3.18 billion while having more than 291,000 holders. With that being said, Solana is now the most popular blockchain when it comes to the number of RWA holders.
Source: X
In addition, Solana is also currently generating the highest income from its applications, with $19 million generated last week and $85 million generated last month.
Source: X
What Happens Next?
These network performance indicators support the long-term bullish outlook, although investors will continue watching for any ability by Solana to regain major resistance levels before it makes a significant turnaround.
For Solana, the future performance depends on its ability to remain above the $41-$56 support region and break out from the resistance range at $260-$280. The breakout level can pave the way to higher targets at $944 or 1,900%.
This article contains market analysis and price predictions. These are not guarantees. Crypto markets are volatile. Always DYOR. Not financial advice.
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