Solana price kick-starts ascent to $400, but SOL bulls face minor impediment
- Solana price has broken out of its cup-and-handle pattern, hinting at the start of a new run-up.
- The theoretical forecast puts the SOL target above $400 after an 88% ascent.
- A daily close below the $204 support level will invalidate the bullish thesis.
Solana price has consolidated for roughly two months under a crucial resistance barrier. However, it breached that level on November 2, suggesting the start of a massive bull run and a new all-time high.
Solana price kick-starts run to new highs
Solana price formed two rounding bottoms after facing resistance at $216. The first one set up a swing low at $115 and is known as the cup, while the second at $175 and is referred to as the handle.
This technical formation forecasts an 88% upswing to $407, obtained by adding the distance between the Cup’s lowest point and the horizontal resistance level at $216. Solana price breached the said barrier on November 2 and has rallied 15%.
However, the Momentum Reversal Indicator (MRI) has flashed a red ‘one’ sell signal on the daily chart. This setup forecasts a one-to-four candlestick correction. While unlikely, investors can expect SOL to retrace to the $216 support floor.
The 100% trend-based Fibonacci retracement at $310 would be the first pitstop the bulls will make on its way to the intended target at $407. In some cases, this ascent could extend to the next Fibonacci level at $430.
SOL/USDT 1-day chart
While things are looking up for Solana price, a daily close below $204 will invalidate the bullish thesis. In such a case, SOL could consolidate around this barrier before giving the bull run another go. However, a bearish case could see Solana price retrace to the $178 support level.
Author
Akash Girimath
FXStreet
Akash Girimath is a Mechanical Engineer interested in the chaos of the financial markets. Trying to make sense of this convoluted yet fascinating space, he switched his engineering job to become a crypto reporter and analyst.
