Solana (SOL) on the Path to Recovery, But Increased Momentum Needed

Solana has embarked on a recovery journey, gaining traction above the $125 mark, but it faces challenges ahead as it consolidates near the $135 level.

Key Takeaways

Solana's price has initiated a recovery above the $125 and $128 levels against the US Dollar.
Currently, SOL is trading above $130 and the 100-hourly simple moving average.
A bullish trend line is emerging with support situated around $130 on the hourly SOL/USD chart.
For continued upward movement, SOL must surpass the $135 and $140 levels.

Solana (SOL) Needs to Hold $200

Solana’s Recovery Efforts

The price of Solana demonstrated resilience by starting a recovery wave that lifted it above $125, echoing similar movements seen in Bitcoin and Ethereum. SOL has successfully climbed past the $130 threshold, indicating positive momentum.

This upward movement aligns with the 50% Fibonacci retracement level of the recent decline from a high of $145 to a low of $121. Additionally, a bullish trend line is forming, offering support at the $130 level on the hourly chart for the SOL/USD pair.

At present, Solana trades above $130 and maintains a position above the 100-hourly simple moving average. The immediate resistance is near the $135 level, corresponding to the 61.8% Fibonacci retracement of the earlier downward movement.

Solana Price Source: SOLUSD on TradingView.com

The next significant resistance level is at $140, with the primary hurdle set at $145. A successful closing above $145 could pave the way for a more sustained increase, potentially reaching the next resistance hurdle at $155. Continued upward momentum may even drive the price toward $162.

Risk of a Downturn for SOL

Conversely, if SOL cannot break through the $135 resistance, it may face downward pressure. Initial support exists near the $130 level, with the first significant support seen around $127.

A breach below the $127 support could push the price toward the $124 support zone. If SOL closes below $124, it risk a further decline towards the $120 mark in the near future.

Technical Indicators

Hourly MACD: The MACD indicator for SOL/USD is gaining momentum in bullish territory.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD is above the 50 threshold, suggesting potential for further gains.
Major Support Levels: $130 and $124.
Major Resistance Levels: $135 and $140.

Understanding these dynamics can help traders navigate Solana's market behavior and identify potential opportunities as the price continues to evolve.