Solana has recently initiated a fresh upward trend, rebounding from the $220 zone. As the SOL price continues to rise, it is setting its sights on surpassing the $250 resistance level, signaling a potential for sustained growth.
Key Highlights
- Following stabilization above the $225 mark against the US Dollar, SOL has begun a new ascent.
- The cryptocurrency is currently trading above $240 and the 100-hourly simple moving average, indicating positive momentum.
- The hourly chart of the SOL/USD pair on Kraken shows a breakout above a significant bearish trend line, offering resistance at $240.
- If the bulls can clear the $250 zone, the pair may witness a further increase.
Solana Price Eyes Sustained Increase
Solana’s price has established a solid support base and has initiated a fresh surge above the $225 level, mirroring movements seen in Bitcoin and Ethereum. The price experienced a robust rise, crossing the $230 and $232 resistance levels, which were critical in paving the way for further gains.
The upward movement also saw Solana surpassing the 50% Fibonacci retracement level, calculated from the downward trajectory between the $256 swing high to the $221 low. Additionally, a significant break above a key bearish trend line, with resistance pegged at $240, was observed on the hourly chart of the SOL/USD pair.
Currently, Solana is trading above $240 and the 100-hourly simple moving average. However, the path forward presents the $244 level as an immediate obstacle, correlating with the 61.8% Fibonacci retracement of the prior decline. Such resistance levels are pivotal as Solana eyes the $248 mark, with the primary hurdle still looming at $250.
An effective close above the $250 resistance could pave the way for a steady and more extensive increase, potentially targeting the $265 level. Should this upward momentum persist, the price might even approach the $278 level in due course.
Are Dips Supported in SOL?
Despite the optimistic outlook, if SOL encounters difficulty in breaching the $248 resistance, a downside correction might ensue. Initial support on this downward trajectory is anticipated around the $240 level, aligning with the 100-hourly simple moving average. The first major support to monitor lies near the $232 level.
If Solana dips below the $232 mark, the price could gravitate towards the $230 zone. A closure beneath the $230 support level may lead to further declines, with the price potentially retreating to the $220 support in the near term.
Technical Indicators
- Hourly MACD: The MACD for SOL/USD is currently gaining momentum within the bullish zone, suggesting a positive trend.
- Hourly RSI (Relative Strength Index): The RSI for SOL/USD remains above the 50 level, indicating relative strength in the current market conditions.
Support and Resistance Levels
- Major Support Levels: $240 and $232
- Major Resistance Levels: $248 and $250
