Solana’s price starts its ascent to $ 400 USD, but bulls face a hurdle
- The price of the Solana cryptocurrency came out of its cup and handle pattern, hinting at the start of a new rise.
- Theoretical forecast places the target above $ 400 USD after an 88% climb.
- A daily close below the $ 204 support level will invalidate the bullish thesis.
The price of the Solana cryptocurrency (SOL) has consolidated for about two months below a crucial resistance barrier. However, the price of the SOL cryptocurrency broke above this level on November 2, suggesting the start of a massive bull run and a new all-time high.
Solana cryptocurrency price hits new highs
The Solana cryptocurrency price formed two rounded lows after facing resistance at $ 216 USD. The former set up a swing low at $ 115 USD and is known as the cup, while the latter at $ 175 USD and is called a cove.
This technical formation predicts an 88% rise to $ 407 USD, achieved by adding the distance between the lowest point of the Cup and the horizontal resistance level at $ 216 USD. The price of Solana cryptocurrency broke said barrier on November 2 and rose 15%.
However, the Dynamics Reversal Indicator (MRI) has issued a red sell signal “one” on the daily chart. This setup provides for a correction of one to four candlesticks. Although unlikely, investors can expect SOL to return to the support level at $ 216 USD.
The 100% Fibonacci retracement based on the trends at $ 310 USD would be the first stop the bulls make on their way to the expected target of $ 407 USD. In some cases, this rise could extend to the next Fibonacci retracement level at $ 430 USD.
Daily Solana chart (SOL / USDT)
As things improve for the price of Solana cryptocurrency, a daily close below $ 204 USD will invalidate the bullish thesis. In such a case, the price of the SOL cryptocurrency could consolidate around this barrier before raising the bull. However, a bearish case could see the price of Solana return to the support level at $ 178 USD.
By Akash Girimath, FXStreet
Akash has been working in the crypto industry as a content writer, analyst for over two years. He is a mechanical engineer interested in emerging technologies and financial markets. Attracted by the chaos of trading, he invested in cryptocurrency and maintains a small crypto fund for his friends and family.
The opinions expressed here are solely those of the author and do not necessarily reflect the views of Forex Quebec. Every investment and trading move comes with risk, you should do your own research when making a decision.
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