Solana (SOL) Gains Momentum — Can It Reach $100?

Solana has initiated a new upward trend above the $88 mark. Currently, SOL is stabilizing around the $90 area and may target further gains above the $92 level.

Key Takeaways

SOL has started a new upward movement, breaking above the $85 and $88 levels against the US Dollar.
The price is now trading above $88 and has crossed the 100-hourly simple moving average.
A significant break occurred above a contracting triangle with resistance at $87, according to the SOL/USD pair's hourly chart (data source from Kraken).
If SOL surpasses the $92 resistance zone, it could lead to further price increases.

Solana (SOL) Upside Awakens

Solana Price Gains Traction

Solana's price has seen a notable increase after successfully settling above the $85 level, similar to the trends observed with Bitcoin and Ethereum. SOL has managed to rise above $88, placing it in a positive short-term position.

The break above the crucial contracting triangle with resistance at $87 on the hourly chart for the SOL/USD pair facilitated this movement. The price even surpassed the $90 resistance level, peaking at $91.12, before consolidating those gains. Although there has been a slight dip below the 23.6% Fibonacci retracement level from the recent upward surge, which started at the swing low of $85.09 and extended to the $91.12 high.

Solana Price Source: SOLUSD on TradingView.com

Currently, Solana is trading above $88 and the 100-hourly simple moving average. However, it faces resistance around the $91.20 mark, with the next significant barrier being at the $92 level. A successful closing above the $95 resistance zone could pave the way for a steady increase. Should this occur, the next major resistance point would be $100, with potential further movements towards the $102 level.

Could There Be a Downward Correction for SOL?

If SOL cannot break above the $91.20 resistance, it may initiate another downward trend. Initial support is found near the $88 area, with the first major support located at around $87.40, coinciding with the 61.8% Fibonacci retracement level from the $85.09 swing low to the $91.12 high.

A drop below the $87.40 level could lead the price towards the $85 support zone. Should SOL close below this support, it might further decline towards the $78 level in the short term.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is gradually losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD remains above the 50 mark.
Major Support Levels: $88.00 and $87.40
Major Resistance Levels: $91.20 and $95.00.

In conclusion, while Solana is currently showing positive momentum, traders should closely monitor resistance and support levels to anticipate potential price movements.