- SOL surged by 17.56% over the past week, with one analyst eyeing a rally to $4000
- Solana whales have been accumulating SOL tokens worth millions too
Over the last 4 days, Solana [SOL] has registered a strong upswing on the charts. During this period, the altcoin broke out of its $200 resistance. In fact, SOL climbed from a low of $187 to a high of $219 on the charts.
At the time of writing, Solana was trading at $216. This marked a 4.35% hike on the daily charts. This, on top of the altcoin’s weekly gains of 17.56%.
Needless to say, this price pump has left the Solana community eyeing a massive rally. According to popular crypto analyst Ali Martinez, for instance, a potential rally to $4k is possible now, with Ali citing a cup and handle pattern on the charts.
Can Solana rally to $4000?
In his analysis, Martinez posited that Solana is likely forming a cup and handle pattern and it could hit a high of $4,000.
Source: Ali on X
When a cup and handle pattern forms, it means that buyers are regaining control after a period of consolidation and are preparing for a breakout.
Usually, this pattern signals a continuation of a bullish momentum. Therefore, if this pattern finally forms, SOL could see an exponential surge to levels ahead.
What do SOL charts say?
While the analysis shared by Ali seemed to offer a promising outlook, it’s essential to determine what other metrics might suggest. For example – According to AMBCrypto’s analysis, Solana has been seeing strong upward momentum amidst a hike in buying pressure.
Source: Spotonchain
We can see this uptick in buying activity from both retail traders and whales. As such, whales have been actively accumulating SOL over the last few days. In fact, one whale withdrew 132,300 SOL tokens worth $28.31 million from Binance.
When whales turn to accumulate, it is a sign of bullish sentiment as they anticipate the price to climb further on the charts.
Source: Coinglass
Additionally, the market’s bullishness can be further evidenced by the greater number of accounts taking long positions.
In fact, long/short accounts for SOL on Binance revealed that 72% of accounts have taken long positions. When longs dominate, it implies that more traders are bullish and anticipate the price to increase.
Source: Santiment
Finally, the greater demand for long positions can be further supported by a positive DyDx funding rate. When the DyDx funding rate is positive, it alludes to market bullishness as investors are willing to pay a premium fee and hold their positions during market downturns.
Simply put, Solana is currently seeinf strong bullish sentiments from retailers and whales. These favorable market conditions position SOL for more gains on its price charts. Therefore, if the prevailing sentiment holds, SOL will attempt the $228 resistance level. And, a breakout from here will strengthen the altcoin for a move to $245.
However, if sellers re-enter the market, Solana will drop to $194. Hence, in the short-term, a rally to $4k is farfetched.
