Date: Mon, Oct 21, 2024, 06:18 PM GMT
The cryptocurrency market has long been a playground for pattern enthusiasts, and recently, three prominent altcoins—Solana (SOL), Jasmycoin (JASMY), and THORChain (RUNE)—have sparked interest by displaying the classic “cup and handle” pattern on their price charts. This formation, known for heralding bullish continuations, suggests these assets might be poised for significant rallies. But what does this mean for investors, and should everyone gear up for a price surge?
Understanding the Cup and Handle Pattern
The cup and handle pattern is a bullish continuation pattern marked by:
- The Cup: A rounded, “U-shaped” bottom formed after a price drop, indicating that the market has found support.
- The Handle: A period of sideways or slight downward movement, building momentum for the next potential rally.
Once the price breaks out above the handle, it often signals the start of a new upward trend.
Altcoins Showing This Pattern
1. Solana (SOL)
Solana is forming a textbook cup and handle pattern after navigating through both bull and bear cycles over the past three years. For the last six months, SOL has fluctuated between $120 and $180 and currently trading at $165. Now, with signs of a breakout emerging, traders expect the token to push beyond its previous all-time high (ATH) of $220—and possibly even higher.
2. JasmyCoin (JASMY)
Crypto analyst STEPH IS CRYPTO recently highlighted a bullish formation on JASMY’s weekly chart and currently trading at $0.02034. According to him, if the breakout confirms, JASMY could soar toward $0.62—a substantial gain from its current price. This has sparked optimism within the community, with many monitoring the pattern closely for confirmation.
3. Thorchain (RUNE)
Thorchain (RUNE) has also caught the spotlight, with a breakout already confirmed above the handle. Crypto trader @Aboozar_trader shared his chart analysis, predicting that RUNE could rise toward its first resistance level of $12—a 140% increase from its current value of $4.95. If the momentum holds, this could mark the start of a significant rally.
What Should Investors Expect?
If these patterns play out as expected, SOL, JASMY, and RUNE might offer solid upside potential in the coming weeks. However, like all technical analysis tools, the cup and handle is not foolproof. Investors should be mindful of other market conditions and external factors that might affect these tokens.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Always conduct your own research before making investment decisions.