Solana Price Analysis: SOL Prepares for a Fresh Increase
Solana (SOL) has experienced a decline, testing the $128 support zone. Currently, the SOL price is in a consolidation phase, with potential for a fresh surge above the $132 resistance level. This detailed analysis delves into the current state of SOL and its potential future movements.
- SOL price has entered a consolidation phase around the $128 zone against the US Dollar.
- The price is trading below $135 and the 100-hour simple moving average.
- A connecting bearish trend line is forming with resistance at $132 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could gain bullish momentum if it clears the $132 resistance zone.
Solana Price Holds Support
Recently, Solana’s price initiated a fresh decline from the $140 resistance zone, mirroring movements in Bitcoin and Ethereum. SOL fell below the $135 and $132 support levels, eventually testing the $128 mark. The low was established at $128.85, and the price is now consolidating its losses. There has been a minor increase above the $130 level, with the price testing the 23.6% Fibonacci retracement level of the downward move from the $139.83 swing high to the $128.85 low.
Currently, Solana is trading below $132 and the 100-hour simple moving average. A connecting bearish trend line with resistance at $132 is also forming on the hourly chart of the SOL/USD pair.
On the upside, the price is encountering resistance near the $132 level. The next significant resistance is around the $135 level, coinciding with the 50% Fibonacci retracement level of the downward move from the $139.83 swing high to the $128.85 low. A successful close above the $132 and $135 resistance levels could pave the way for another steady increase. The subsequent key resistance is near $140, with potential gains propelling the price toward the $150 level.
More Downsides in SOL?
If SOL fails to break above the $132 resistance, it could initiate another decline. Initial support on the downside is near the $130 level, with the first major support at the $128 level. A break below the $128 level could drive the price towards the $120 zone. Should there be a close below the $120 support, the price might decline further towards the $110 support in the near term.
Technical Indicators
- Hourly MACD – The MACD for SOL/USD is losing momentum in the bearish zone.
- Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is near the 50 level.
- Major Support Levels – $130 and $128.
- Major Resistance Levels – $132 and $135.
