Solana (SOL) has initiated a recovery wave from the $120 support zone. The cryptocurrency’s price is currently on the rise and might be setting its sights on the $150 resistance level.
Key Points
- SOL price started a recovery wave above the $125 level against the US Dollar.
- The price is now trading above $128 and the 100-hourly simple moving average.
- There is a connecting bullish trend line forming with support at $130 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could gain bullish momentum if it clears the $138 resistance zone.
Solana Price Extends Losses
Solana price established a support base above the $120 level and began a recovery wave similar to other major cryptocurrencies like Bitcoin and Ethereum. SOL traded above the $125 and $128 resistance levels, indicating a bullish momentum.
The price ascended above $132, testing the critical barrier at $138. A peak was reached at $137, after which the price began consolidating its gains. There was a slight pullback below $135, aligning with the 23.6% Fibonacci retracement level of the upward move from the $120 swing low to the $137 high.
Currently, Solana is trading above $130 and the 100-hourly simple moving average. Furthermore, a connecting bullish trend line is forming with support around the $130 mark on the hourly chart of the SOL/USD pair.
Upside Potential
On the upside, Solana’s price faces resistance near the $135 level. The next significant resistance is around the $138 mark. A successful close above the $135 and $138 resistance levels could pave the way for another steady increase. The next key resistance level is near $142, and surpassing this could drive the price toward the $150 level.
Another Decline in SOL?
If SOL fails to break above the $138 resistance, it could trigger another decline. The initial support on the downside is near the $130 level and the trend line. The first major support level is around $126, which aligns with the 61.8% Fibonacci retracement level of the upward move from the $120 swing low to the $137 high.
A break below the $126 level might push the price back toward $120. A close below the $120 support could lead to a further decline toward the $110 support level in the short term.
Technical Indicators
- Hourly MACD – The MACD for SOL/USD is losing pace in the bullish zone.
- Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level, indicating bullish momentum.
- Major Support Levels – $130 and $126.
- Major Resistance Levels – $135 and $138.
In conclusion, Solana’s price is showing signs of recovery, but it must overcome critical resistance levels to sustain its upward momentum. Traders and investors should keep a close eye on the $138 resistance zone and the $126 support level for potential market moves.
