SOL Eyes Recovery: Market Compression and Cup Formation Spark Optimism

Solana $SOL 12-hour chart shows compression near 138–140 USDT, with small candles signaling potential slowdown in bearish momentum and early bullish cycles.

Daily SOL/USDT chart displays a long-term cup-and-handle pattern, indicating accumulation and potential multi-step price recovery toward 460 USDT resistance levels.

Market capitalization trends show stabilization near $75B, forming a local base while SOL attempts minor recovery, signaling possible continuation of upward price movement.

Solana is showing early indications of a trend shift on multiple timeframes. Price movements suggest potential base-building near key support levels, with short-term indicators signaling a cautious recovery attempt.

TD Sequential Signals on the 12-Hour Chart

Recent 12-hour SOL/USDT charts indicate a strong downtrend followed by a period of compression. Long-bodied black candles reflect persistent selling pressure before volatility contracts near the 138–140 USDT zone.

Smaller candles with wicks on both ends demonstrate market indecision and a slowdown in bearish momentum. Volume patterns suggest consolidation rather than a full breakout at this stage.

Analyst Ali noted on Twitter that a green “1” has appeared, indicating the start of a possible bullish cycle. A grey upward arrow and the preceding “9” marker suggest a completed exhaustion phase.

The market remains below previous structure and wider trendline resistance. Reclaiming the mid-140s zone could convert the current compression into a more meaningful pivot point.

Long-Term Cup and Handle Formation

On the daily chart, Solana shows a potential long-term cup-and-handle pattern forming over several years. Early expansion arcs and extended consolidation phases resemble rounded-bottom accumulation structures.

Trader Ray shared that the recent price dip has reached the lower curvature of this larger formation. Price movements are attempting to recover toward the 220–260 USDT mid-range zone, suggesting accumulation phases.

If the cup-and-handle pattern follows historical trends, reclaiming the mid-supply region may lead to a higher low and eventual price markup. Upper targets around 460 USDT remain visible on this long-term roadmap, contingent on steady price recovery.

Market Capitalization Trends and Recovery Attempts

Solana’s market capitalization has reflected broader selling pressure over recent weeks, dropping from approximately $110B to near $75B. Initial declines coincided with macro uncertainty and liquidity rotations.

The market experienced brief stabilization periods, but repeated lower-high structures indicated weak bullish follow-through.Solana’s price flattened near its lower boundary, hinting at a local base and traders are closely watching key support and resistance levels for the next move.

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