In recent trading sessions, Solana has embarked on a promising upward trajectory, surpassing the pivotal $172 support zone. With this momentum, SOL’s price is on a bullish path, potentially setting its sights on the significant $200 level.
Key Highlights
- Solana initiated a fresh ascent after stabilizing above the $165 threshold against the US Dollar.
- The current trading activity is positioned above $172, comfortably aligned with the 100-hourly simple moving average.
- Notably, there was a breakout above a crucial bearish trend line, with resistance marked at $162 on the hourly SOL/USD chart (sourced from Kraken).
- The potential for continued growth persists if the pair successfully overcomes the $192 resistance zone.
Solana’s Bullish Momentum
Solana has successfully established a robust support foundation, catalyzing a fresh uptrend beyond the $162 level, mirroring movements similar to Bitcoin and Ethereum. The currency experienced a strong push past the $165 and $172 resistance marks.
The recent breakout above the bearish trend line resistance at $162 on the hourly SOL/USD chart was a pivotal move. The price surged past the $185 level, forming a high at $192, where it is currently consolidating its gains. Trading now takes place above the 23.6% Fibonacci retracement level, calculated from the $155 swing low up to the $192 high.
Presently, Solana is comfortably trading above the $172 mark and maintains its position above the 100-hourly simple moving average. However, resistance looms near the $192 level, with the next significant resistance point expected around $195.
The primary resistance challenge lies at $200. A decisive close above this level could pave the way for a sustained upward momentum. Beyond this, the subsequent resistance is projected at $212, and further gains might propel the price toward the $220 benchmark.
Potential for a Downside Correction?
Should Solana encounter difficulty in breaking past the $192 resistance, there is a possibility of a corrective pullback. Immediate support on this downward path is anticipated around the $188 mark, with the first substantial support located near $180.
A breach below the $180 level could drive the price back toward the $172 zone or the 50% Fibonacci retracement level from the $155 swing low to the $192 peak. If the price closes below the $172 support line, a decline toward the $165 support level may ensue in the short term.
Technical Indicators
- Hourly MACD: The MACD for SOL/USD is gaining momentum within the bullish territory.
- Hourly RSI (Relative Strength Index): The RSI for SOL/USD is positioned above the 50 level, indicating a bullish sentiment.
- Major Support Levels: $188 and $185.
- Major Resistance Levels: $192 and $200.
As Solana continues on its upward journey, market watchers are keenly observing the price action, especially as it approaches the critical $200 level. The coming sessions will be crucial in determining whether Solana can sustain its bullish momentum or if market dynamics will steer it toward a corrective phase.
