Cryptocurrency braces for its steepest surge since 2021, caution experts

Solana, the sixth most capitalized cryptocurrency, is causing a stir among technical analysts and institutional strategists due to the formation of a technical pattern known as the "cup and handle". This pattern, if confirmed, could trigger one of the most aggressive upswings since the last bull cycle.

Currently, Solana is trading above $181. If the cryptocurrency manages to break through the key resistance at $250, some models project a price target between $4,800 and $6,000 in the coming years. However, it's important to note that the historical record of this pattern indicates that it only reaches its maximum objective 61% of the time.

The "cup and handle" pattern in Solana has formed on monthly timeframes, with the initial breakout potentially leading to highs of $300 and $400. The "neckline" of this pattern is at $250, and a significant breakthrough could serve as the definitive confirmation signal.

The optimism surrounding Solana is not solely based on the technical analysis. The Securities and Exchange Commission (SEC) is considering the potential approval of a spot ETF for Solana (SOL) by October 10. If approved, this would facilitate access for institutional investors and validate Solana as a regulated asset.

The REX-Osprey SOL staking ETF, launched this month, has already surpassed $100 million in assets under management in less than two weeks. The approval of an ETF would be a significant step forward for Solana, as it could lead to its inclusion in regulated financial products.

This potential inclusion is facilitated by the Clarity Act, a law that redraws the regulatory framework for digital assets in the US. Solana meets several criteria set by the Clarity Act, which could assign oversight of tokens like SOL to the Commodity Futures Trading Commission (CFTC) instead of the SEC.

However, it's worth noting that most projections for Solana in 2021 are more conservative. Traders Union expects a range between $215 and $263 for December. Others estimate an average of $176 for Solana in 2021, with a maximum of $2,209 per unit.

Despite these more conservative projections, analysts maintain that the move towards $6,000 is imminent, although not immediate. Solana is at a technical and fundamental crossroads, with the "cup and handle" pattern suggesting long-term bullish potential.

The journey to $6,000, if it occurs, would be gradual and dependent on external factors. Sources suggest that the SEC could expedite the process and give the green light to these financial instruments, which could further fuel Solana's growth.

In conclusion, the potential "cup and handle" pattern and the upcoming ETF approval are causing excitement in the Solana community. While the journey to $6,000 is not guaranteed, the current trends suggest a bullish outlook for Solana in the long term.