Solana (SOL) Pauses at a Crucial Level — Will a Significant Move Follow?

Solana has initiated a recovery wave, moving above the $135 mark. However, SOL is currently consolidating and encountering challenges in the $140 region.

Key Takeaways

SOL price has begun a recovery above the $132 and $135 levels against the US Dollar.
The price remains above $132 and the 100-hour simple moving average.
A bullish trend line is forming with support at $133 on the hourly chart of the SOL/USD pair (data sourced from Kraken).
The price has the potential to rise further if it surpasses the $140 and $142 marks.

Solana (SOL) Corrects Some Gains

Solana Price Encounters Resistance

The price of Solana has maintained stability and has embarked on a recovery wave above the $130 mark, following trends seen in Bitcoin and Ethereum. SOL successfully rose past the $135 threshold, working towards the 61.8% Fibonacci retracement level from the decline associated with the $145 high to the $121 low. Additionally, a bullish trend line is unfolding with support positioned at $133 on the hourly SOL/USD chart.

Currently, Solana is trading above $134 and the 100-hour simple moving average. Immediate resistance is observed at the $140 level, which corresponds to the 76.4% Fibonacci retracement level from the previous price drop.

Solana Price
Source: SOLUSD on TradingView.com

The next significant resistance lies at the $142 level, with the primary resistance level set at $145. A successful close above $145 could pave the way for a continuous uptrend, with $155 being a key target. Should the price gain further, it could reach towards the $162 level.

Could Another Decline in SOL Occur?

If SOL does not breach the $140 resistance, it may continue to decline. Initial support is projected around the $133 zone, along with the trend line. The first significant support level emerges near $128.

A break below this $128 mark could drive the price down to the $122 support zone. If the price closes under $122, it might lead to a further decline towards the $115 range in the near term.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is showing a decrease in momentum while still in the bullish zone.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD is currently above the 50 mark.
Major Support Levels: $133 and $128.
Major Resistance Levels: $140 and $145.