Solana has embarked on a promising upward trajectory, breaking past the crucial $165 resistance zone. Currently, SOL is trading well above $175, with eyes set on surpassing the $185 mark. This article delves into the technical aspects of Solana’s price movement, exploring potential upsides and possible downside corrections.
Key Highlights of Solana’s Price Movement
- Solana’s price is exhibiting bullish signs from the $165 support zone against the US Dollar.
- The price is currently positioned above $172, as well as the 100-hour simple moving average.
- A significant breakthrough occurred above a bearish trend line, with resistance near the $177 mark on the hourly SOL/USD chart (data sourced from Kraken).
- If the pair exceeds the $182 resistance, it might gain bullish momentum, potentially revisiting the $200 mark.
Solana Price Eyes Further Upsides
Solana’s price established a strong base above the $160 level, initiating a fresh surge similar to that of Bitcoin and Ethereum. This upward movement was marked by a successful breach of the $165 and $170 resistance levels, with bullish forces pushing the price beyond $175.
On the hourly SOL/USD chart, a critical bearish trend line was surpassed with resistance at $177. The pair even tested the $182 level and is currently consolidating its gains above the 23.6% Fibonacci retracement level, from the upward swing low of $172.35 to the high of $182.10.
At present, Solana trades above $172 and maintains a position above the 100-hour simple moving average. Resistance is anticipated near $182, with the subsequent major resistance situated around $185. A decisive close above both $185 and $188 could pave the way for a continued upward trend, targeting the next key resistance at $195. Further gains might propel the price toward the $200 threshold.
Potential Downside Correction for SOL
Should Solana struggle to surpass the $182 resistance level, a downside correction may ensue. Initial support on this downward path is expected near the $180 mark, with a more significant support level around $176, which aligns with the 61.8% Fibonacci retracement level of the recent upward movement from $172.35 to $182.10.
A breach below $176 could drive the price toward the $172 zone. If the price closes below this $172 support, a further decline toward the $165 support could be anticipated in the near term.
Technical Indicators
- Hourly MACD: The MACD for SOL/USD is gaining momentum within the bullish zone, indicating positive sentiment.
- Hourly RSI (Relative Strength Index): The RSI for SOL/USD is positioned above the 50 level, suggesting a healthy bullish trend.
- Major Support Levels: $178 and $176 are key support levels to watch in case of a downside movement.
- Major Resistance Levels: $182 and $185 are significant resistance levels that could determine the future upward trajectory.
In conclusion, Solana’s current price action suggests a potential for further gains, provided key resistance levels are breached. However, traders should remain vigilant for any signs of a downside correction and be prepared to react accordingly. By staying informed about Solana’s technical indicators and market trends, investors can make more strategic decisions in navigating this volatile market.
