Solana (SOL) Recovery Gains Momentum as Bulls Gear Up for Upside Potential

Solana is showing signs of recovery after finding support at $85, as the price stabilizes above $90 and may target further upward movement.

Key Takeaways

Solana's price has started a recovering trend, exceeding $90 against the US Dollar.
The SOL price trades above the 100-hourly simple moving average, indicating a positive trend.
A crucial resistance is identified at $92.80; successful navigation above this level could trigger additional gains.

Solana (SOL) Recovery Gains

Solana's Price Shows Signs of Recovery

The price of Solana has managed to maintain stability and has begun a notable recovery from a low of $85, following trends seen in Bitcoin and Ethereum. SOL has successfully climbed above the $90 mark, breaching the 50% Fibonacci retracement level of the drop from the $97.67 peak to the $85.10 low. Additionally, a significant bearish trend line was surpassed, with a noted resistance point at $88 on the hourly chart for the SOL/USD trading pair.

Despite this upward movement, selling pressure remains strong around the $92 level. Presently, Solana's price is above $90 and the 100-hourly simple moving average, with immediate resistance sitting at $92.20. The next significant resistance lies around the $92.80 mark, which corresponds to the 61.8% Fibonacci retracement level from the earlier mentioned price drop.

Solana Price Movement
Source: SOLUSD on TradingView.com

A pivotal resistance level appears to be at $95. If the price can close successfully above this zone, it may pave the way for continued upward movement, with subsequent resistance projected at $102. Further gains could see the price potentially reaching up to the $112 level.

Potential for a Decline in SOL

Should Solana fail to surpass the $92.80 resistance, there is a risk of further downward movement. The initial support is expected around the $88.40 region, followed by a more significant support line at $85. If the price drops below the $85 mark, it could head towards the $82 support zone. A close beneath this level could lead Solana down to approximately $75 in the short term.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is showing increasing momentum within the bullish range.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD is positioned above the 50 mark, indicating a positive trend.
Major Support Levels: $92.80 and $95.00.
Major Resistance Levels: $88.40 and $85.00.

By keeping an eye on these indicators and levels, investors can better navigate the potential volatility in Solana's price movements.