Solana (SOL) Aims for Price Breakout as Bulls Sense Momentum Shift

Solana has initiated a recovery above the $120 level, and the SOL price is currently in a consolidation phase, facing challenges near the $128 mark.

Key Takeaways

SOL price has begun a recovery above $122 and $124 against the US Dollar.
Trading is currently above $125 and the 100-hour simple moving average.
A key bearish trend line is forming with resistance around $127 on the hourly chart for the SOL/USD pair (data source: Kraken).
Continued upward movement may occur if the price surpasses $128 and $130.

Solana (SOL) Aims for Price Breakout

Resistance Levels for Solana Price

The price of Solana has remained firm, starting a recovery wave from $117, similar to Bitcoin and Ethereum. SOL has climbed past the $120 mark. This move included breaching the 50% Fib retracement level of the decline from the $134 swing high down to the $117 low. Bulls have managed to push the price above $125; however, bearish pressure remains significant at $127. A key bearish trend line is being observed with resistance at $127 on the hourly SOL/USD chart.

Currently, Solana is trading above $125 and stands above the 100-hour simple moving average. The immediate resistance is identified near the $127 level, alongside the 61.8% Fib retracement of the drop from $134 to $117.

Solana Price
Source: SOLUSD on TradingView.com

The primary resistance to watch is around the $130 mark, with more critical resistance noted at $135. If SOL can close above the $135 resistance zone, it may lead to a sustained upward trend. Following that, the next major resistance level comes in at $144, with further gains potentially pushing the price toward the $150 area.

What if SOL Declines?

Should SOL not succeed in breaking through the $130 resistance level, a decline might follow. The initial support is near the $125 area, with the first significant support level at $122. Falling below $122 may drive the price down toward the $117 support zone. If there is a close below this $117 support, it could lead to a further decrease toward the $108 level in the near term.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is gaining momentum in the bullish zone.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD sits above the 50 level.
Major Support Levels: $125 and $122.
Major Resistance Levels: $128 and $130.