Solana is showing strength by staying above the support level of $67.50 and has initiated a new upward trend. The price of SOL is picking up momentum and is likely to make an effort to surpass the $80 mark soon.
The SOL price has initiated a new rally, surpassing the $72 resistance level against the US Dollar. Currently, it is trading above $74 and has crossed the 100 simple moving average (4 hours). Examining the 4-hour chart of the SOL/USD pair (data sourced from Kraken), a significant bullish trend line is taking shape with support around $70.00. The pair has experienced an impressive 8% increase and shows potential for further rallying beyond the $80 resistance zone.
Solana’s Recent Performance and Potential Upside Movement
In the recent days, Solana, much like Bitcoin and Ethereum, underwent a corrective downturn from the $80.00 zone. This led to SOL slipping beneath the $77.50 and $75.00 support levels.
Despite this, bullish activity prevailed above the $67.50 support, forming a low around $67.25. Presently, there’s an effort to instigate a fresh upward movement, marked by a climb above the $70 and $72 resistance levels. Notably, SOL has surged nearly 8%, breaching the 50% Fib retracement level from the $79.45 swing high to the $67.25 low.
As of now, SOL is trading beyond $74 and above the 100 simple moving average (4 hours). The 4-hour chart for the SOL/USD pair reveals a significant bullish trend line with support at approximately $70.00.
Source: SOLUSD on TradingView.com
Looking at potential obstacles on the upside, the immediate resistance rests around $76.50, close to the 76.4% key bullish trend line. Beyond this, the first major hurdle is near $80.00, with the primary resistance at $82.0. A successful close above this level might pave the way for a substantial rally, with the next key resistance at $88.00. Further gains could propel the price towards the $92.00 level. Solana’s performance remains dynamic, with attention on key resistance levels for potential upward movements.
Solana’s Potential Downside Scenarios and Key Technical Indicators
If SOL encounters difficulty surpassing the $80.00 resistance, there’s a possibility of a fresh decline. The initial support on the downside is expected around the $72.00 level.
The first major support comes into play near the $70.00 level or the identified trend line. Dropping below this, the price may test the $67.50 support. A close below $67.50 could lead to a decline towards the $65.00 support in the short term.
Technical Indicators:
4-Hours MACD: The MACD for SOL/USD is exhibiting bullish momentum in the current zone.
4-Hours RSI (Relative Strength Index): The RSI for SOL/USD is positioned above the 50 level, indicating a positive stance.
Key Support Levels: $72.00, and $70.00.
Key Resistance Levels: $76.50, $80.00, and $88.00.
As Solana faces the challenge of breaching key resistance, monitoring these support and resistance levels along with the MACD and RSI indicators will provide insights into potential market movements.
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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