Solana (SOL) is trading at $104.98 at the time of writing, up 5.31% over the last 24 hours. Trading volume sits at $3.77 billion, and the token's market capitalization is $61.44 billion.

Crypto analyst JAVON MARKS says SOL has broken above the resistance line of a cup-and-handle chart pattern. In a post on X, Marks shared a chart showing the breakout and said it strengthens the case for further upside:

$SOL BREAKS OUT in this Cup & Handle pattern and the future is looking bright green! With this breakout, we are targeting $500+ which is currently over 350% away! Solana can be set for a major extension to new All Time Highs… pic.twitter.com/irqHSb2drO

— JAVON MARKS (@JavonTM1) September 3, 2026 (https://x.com/JavonTM1/status/2095533784787468754)

Marks pointed to the setup as a sign that buyers are back in control after weeks of consolidation. He said traders should now watch whether SOL can turn the old resistance level into new support.

The cup-and-handle is a classical chart formation in technical analysis: a rounded base (the cup) followed by a shallower pullback (the handle), with a breakout above the handle's resistance line often read by traders as a continuation signal. Pattern analysis of this kind is interpretive, however, and does not guarantee any particular outcome.

The breakout has led to discussion of SOL reaching $500. That level would represent a new all-time high for the token, though it would require sustained buying and strong volume to get there.

Technical Data and Derivatives Activity

TradingView data shows SOL broke out of a summer consolidation range between $62 and $78. The token pushed to $105.01, a daily gain of 4.58%, and now trades above its 20, 50, 100, and 200 EMAs.

The RSI sits at 68.20, with its signal line at 76.14. An RSI reading approaching 70 is conventionally viewed as approaching overbought territory, which some traders watch as a signal that momentum may be stretched. The 20 EMA, near $95.67, is seen as a short-term support level.

CoinGlass data shows derivatives trading volume rose 12.10% to $9.38 billion, while open interest climbed 1.76% to $6.57 billion, pointing to more speculative activity around SOL. Rising open interest alongside a price advance means new positions are being opened rather than existing ones closed, though it does not by itself indicate direction.

Bitcoin has also moved higher in recent sessions, which has helped lift sentiment across the wider crypto market. Large-cap altcoins such as SOL have historically tended to move in broad correlation with Bitcoin's direction, which is why traders often track the market leader alongside individual token setups.

AI Payments and Long-Term Growth

The Solana Foundation has rolled out payment channels built for AI agents. The system is designed to handle high-frequency transactions without settling every single payment on-chain. The tool is live through Pay.sh, connecting to an Alibaba Cloud API endpoint, and developers say it can process up to one million transactions per second.

The initiative places Solana among the blockchains positioning themselves for machine-to-machine payments, a use case where AI agents autonomously pay for services such as API access and compute — a demand driver frequently cited in discussions of crypto's role in AI infrastructure.

Separately, analyst Curb posted on X that SOL could eventually reach $1,000 or higher over the long term. He said investors should focus on Solana's growing ecosystem rather than short-term price swings. Curb pointed to rising use of Solana for tokenized assets and payments as part of the case, while noting that sustained demand and liquidity would be needed for that kind of move. Such long-term targets are analyst projections, not forecasts of guaranteed outcomes.

Solana's official X account shared data showing apps on the network generated $143 million in revenue during August. That figure, sourced from DeFiLlama, made Solana the top blockchain for app revenue that month, and August revenue more than doubled the July total. App revenue is one measure of actual network usage, distinct from price speculation, and is often used to gauge whether ecosystem activity is supporting valuation.

Traders are now watching whether SOL can hold above the breakout zone in the sessions ahead.

Source: Blockonomi