Solana (SOL) Moves Higher – Bulls Target Next Big Level as Volume Builds

Solana started a fresh increase above the $245 zone. SOL price is now correcting some gains and might find bids near $242 or $240.

• SOL price started a fresh upward move above the $242 and $245 levels against the US Dollar.
• The price is now trading above $240 and the 100-hourly simple moving average.
• There was a break above a key bearish trend line with resistance at $240 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The pair could extend losses if it dips below the $240 zone.

Solana Price Corrects Some Gains

Solana price started a decent increase after it settled above the $232 zone, beating Bitcoin and Ethereum. SOL climbed above the $240 level to enter a short-term positive zone.

There was a break above a key bearish trend line with resistance at $240 on the hourly chart of the SOL/USD pair. The price even smashed the $245 resistance. The bulls were able to push the price above the $250 barrier. A high was formed near $253 and the price recently corrected some gains.

There was a move below the 23.6% Fib retracement level of the upward wave from the $232 swing low to the $253 high. However, the bulls were active above $242.

Solana is now trading above $242 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $248 level. The next major resistance is near the $254 level. The main resistance could be $255. A successful close above the $255 resistance zone could set the pace for another steady increase. The next key resistance is $268. Any more gains might send the price toward the $272 level.

More Losses In SOL?

If SOL fails to rise above the $248 resistance, it could start another decline. Initial support on the downside is near the $242 zone and the 50% Fib retracement level of the upward wave from the $232 swing low to the $253 high. The first major support is near the $240 level.

A break below the $240 level might send the price toward the $232 support zone. If there is a close below the $232 support, the price could decline toward the $220 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is losing pace in the bullish zone.

Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Major Support Levels – $242 and $240.

Major Resistance Levels – $248 and $255.