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 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.
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.
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