Solana (SOL) Pulls Back After Rally as Market Watches Resistance Level

Solana has started a new upward trend, climbing above the $135 mark. Currently, SOL is consolidating above $142 and may target further gains beyond the $145 resistance.

Key Takeaways

SOL's Uptrend: The Solana price has surged above the $135 and $140 levels against the US Dollar.
Current Trading Status: It's now trading above $140 alongside the 100-hour simple moving average.
Support Levels: A bullish trend line is forming with support at $143 on the hourly chart of the SOL/USD pair.
Resistance Zones: The potential for more gains exists if SOL clears the $145 resistance zone.

Solana (SOL) Rallies

Solana Price Gains Momentum

Solana initiated a substantial upward movement after establishing support above the $128 level, similar to trends seen with Bitcoin and Ethereum. SOL surpassed the $135 threshold, marking its entry into a short-term bullish phase.

The price successfully breached the $140 resistance, with bullish momentum driving it above $142. Currently, Solana is solidifying its gains above the 23.6% Fibonacci retracement level from the recent rise, which ranged from the $123 swing low to the $146 high.

As it stands, Solana is trading above $140 and the 100-hourly simple moving average. Moreover, a bullish trend line is emerging, exhibiting support at $143 on the hourly chart for the SOL/USD pair.

Solana Price
Source: SOLUSD on TradingView.com

On the positive side, Solana price is encountering resistance around the $145 mark. The next significant resistance is positioned near $148, while the primary resistance could be at the $150 level. A successful close above the $150 zone may lead to a sustained upward trend. Following that, the next critical resistance point is set at $162. Continued bullish momentum could potentially drive the price towards the $180 level.

Potential for Another Decline in SOL?

If Solana does not manage to break past the $145 resistance, it might face another downturn. Initial support is visible near the $143 area, corresponding with the trend line. The first major support level lies around $135, which aligns with the 50% Fibonacci retracement from the recent upward shift.

Should the price drop below the $135 mark, it could fall towards the $128 support area. If it closes under this support, the price may further decline towards the $120 level in the short term.

Technical Indicators

Hourly MACD: The MACD for SOL/USD shows a decrease in momentum in the bullish range.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD remains above the 50 level.
Major Support Levels: $143 and $135.
Major Resistance Levels: $145 and $150.