- SOL has surged 17.56% over the past week, with one analyst predicting it will rise to $4000.
- Solana whales have accumulated millions of dollars worth of SOL tokens.
Over the past four days, Solana (SOL) has recorded a strong rise on the charts. During this period, the altcoin broke the $200 resistance. In fact, SOL rose from a low of $187 on the chart to a high of $219.
At the time of writing, Solana was trading at $216. This represents an increase of 4.35% on the daily chart. This represents a weekly rise of 17.56% for the altcoin.
Needless to say, this price increase has the Solana community anticipating a massive rally. For example, according to renowned cryptocurrency analyst Ali Martinez, a potential rally to $4,000 is currently possible, with Ali citing a cup-and-handle pattern on the charts.
Can Solana rise to $4000?
In his analysis, Martinez assumed that Solana is likely to form a cup-and-handle pattern and could reach a high of $4,000.
Source: Ali on X
When a cup and handle pattern forms, it means buyers are taking back control after consolidating for a while and preparing for a breakout.
Typically, this pattern signals continued bullish momentum. Therefore, when this pattern finally forms, SOL could surge exponentially to future levels.
What does the SOL chart say?
The analysis shared by Ali seemed to offer promising prospects, but it is important to determine what other indicators may suggest. For example – AMBCrypto’s analysis shows that Solana is showing strong upward momentum amidst increasing buying pressure.
Source: SpotOnChain
We are seeing an increase in purchasing activity from both retailers and whales. As such, the whales have been actively accumulating SOL over the past few days. In fact, one whale withdrew 132,300 SOL tokens worth $28.31 million from Binance.
When whales start accumulating, it is a sign of bullish sentiment as we expect the price to move higher on the chart.
Source: Coinglass
Additionally, market strength may be further evidenced by the increasing number of accounts taking long positions.
In fact, 72% of Binance’s SOL long/short accounts were found to have taken long positions. A dominant buying trend means that more traders are optimistic and expect the price to rise.
Source: Santiment
Lastly, positive DyDx funding rates may further support greater demand for long positions. A positive DyDx funding ratio suggests market strength as investors are willing to pay premium fees and hold positions during market downturns.
In short, Solana is currently feeling strong optimism from retailers and whales. These favorable market conditions may allow SOL to gain more profits on the price chart. Therefore, if the prevailing sentiment holds, SOL will attempt the $228 resistance level. And a breakout here would strengthen the altcoin towards $245.
However, when sellers re-enter the market, Solana falls to $194. Therefore, it is unreasonable for it to rise to $4,000 in the short term.