- Solana price could undergo a minor retracement as the MRI warms of an impending sell signal.
- In some cases, SOL could retest the $216.9 support floor before kick-starting an 88% ascent to $407.
- A daily close below $204 will invalidate the bullish thesis.
Solana price looks suspended after breaching a crucial hurdle, suggesting indecision among buyers. An eventual resolution of this condition will likely result in SOL exploding to new highs.
Solana price awaits directional bias
Solana price set up three equal highs at $216 resistance barrier between September 9 and November 2. Between these swing points, SOL also created two distinctive swing lows, one higher than the other, resulting in the formation of a cup-and-handle pattern.
This technical formation forecasts an 88% ascent to $407, obtained by adding the distance between the first swing high and swing low to the horizontal resistance barrier at $216.
While this theoretical target puts Solana price at a new all-time high, investors need to be aware that the Momentum Reversal Indicator (MRI) has flashed a ‘yellow down arrow’ on the daily chart, suggesting that a further continuation of the uptrend will result in a red ‘one’ sell signal that forecasts a one-to-four candlestick correction for SOL.
Therefore, market participants need to be aware of a potential correction.
Regardless of this blip of a pullback, Solana price will see a pitstop at $310, coinciding with the 100% trend-based Fibonacci extension level. Clearing this area will propel it to the intended target at $407.
SOL/USDT 1-day chart
On the other hand, if Solana price fails to move higher and the correction knocks it down to $216, the buyers will have another chance at an upswing. If the sellers overwhelm the buying pressure, producing a lower low below $204, it will invalidate the bullish thesis.
In such a case, Solana price could explore lower and revisit $178 or $166 support floor.
