- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.