Solana is showing bullish momentum as its price rises above $100. This signals a potential increase, with SOL’s price possibly rallying even higher towards the $112 mark.
Starting from the $93.20 support against the US Dollar, SOL price has begun a new uptrend. It’s currently trading above $98 and the 100 simple moving average (4 hours). On the 4-hour chart of the SOL/USD pair from Kraken, there was a significant breakthrough above a major bearish trend line with resistance at $96. If the pair manages to surpass the resistance levels at $102.50 and $105.00, the rally may continue.
Solana Shows Strong Growth Momentum
Solana’s price has established a support base above the $93.20 zone and has recently initiated a fresh uptrend. This uptick saw a notable rise above the $96 and $98 levels.
With a surge of over 7%, Solana surpassed the $100 mark, showcasing a stronger performance compared to Bitcoin and Ethereum. During this climb, it also surpassed the 76.4% Fibonacci retracement level of the previous downward movement from the $102.46 swing high to the $93.17 low.
Additionally, a significant breakthrough occurred above a major bearish trend line with resistance at $96 on the 4-hour chart of the SOL/USD pair. Presently, Solana is trading above $98 and the 100 simple moving average (4 hours).
Source: SOLUSD on TradingView.com
Immediate resistance lies near the $102.50 level, followed by a major hurdle at $105. A successful close above this $105 resistance could pave the way for another substantial increase. The subsequent key resistance stands at $112, with further gains potentially pushing the price toward the $120 level.
Potential Downside Scenarios for Solana (SOL) Price
If Solana fails to surpass the $105 resistance level, it could initiate a downside correction. Initial support on the downside is anticipated near the $98 level.
The first major support level is positioned near $96, closely aligned with the 100 simple moving average (4 hours). If this level is breached, the price may test the critical support at $93.20. A close below this level could prompt a decline toward the $85 support in the short term.
Technical Indicators
- 4-Hour MACD: The MACD for SOL/USD is exhibiting an uptrend in the bullish zone.
- 4-Hour RSI (Relative Strength Index): The RSI for SOL/USD is above the 50 level, indicating bullish momentum.
- Major Support Levels: $96 and $93.20.
- Major Resistance Levels: $102.50, $105, and $112.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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