Solana (SOL) Maintains Support After Gains, Testing Bullish Sentiment

Solana has initiated a new upward trend, moving above the $135 mark. Currently, SOL is consolidating above this level and may be targeting additional gains beyond the $140 threshold.

Key Takeaways

SOL price has begun a fresh upward trend, surpassing the $135 and $138 levels against the US Dollar.
The currency is trading above the $135 mark and the 100-hourly simple moving average.
A contracting triangle with support at $138 is forming on the hourly chart of the SOL/USD pair (data sourced from Kraken).
The price may continue to climb if it breaks through the $140 resistance level.

Solana (SOL) Holds Support Post-Gains

Solana Price Sets Its Sights on Further Gains

Solana's price has shown a positive trend since establishing itself above the $130 level, a movement mirrored by Bitcoin and Ethereum. SOL rose past the $135 threshold, entering a short-term bullish territory. The price even broke through the $140 resistance before peaking at over $142. Despite experiencing some fluctuations, the price has now settled above the 50% Fibonacci retracement level following a recent upward movement from a low of $136 to a high of $141.

Currently, Solana is trading above $138 and holds above the 100-hourly simple moving average. Additionally, a contracting triangle is taking shape on the hourly chart of the SOL/USD pair, with defined support at $138.

Solana Price
Source: SOLUSD on TradingView.com

On the upside, the price is encountering resistance around the $140 level. The next significant resistance lies near $142, with a key barrier at $145. If the price manages to close above $145, it could lead to a more substantial upward movement, targeting the next key resistance level at $150. Further gains may push the price toward the $155 mark.

Possibility of a Downside Break for SOL?

If SOL fails to overcome the $142 resistance level, it could face a potential decline. Initial support is identified around the $138 level, alongside the trend line and the 76.4% Fibonacci retracement level from the recent upswing between the $136 swing low and $141 high. The first major support level is situated near $136.

Should the price drop below $136, it might fall toward the $130 support zone. Any closing below this crucial support could lead SOL to decline toward the $120 level in the short term.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is showing a slowing momentum within the bullish territory.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD remains above the 50 mark.
Major Support Levels: $138 and $136.
Major Resistance Levels: $140 and $142.

With the current dynamics in place, traders and investors should closely monitor Solana's price action, as breaking through key resistance or support levels will significantly influence its forthcoming movements.