Solana (SOL) Targets Upside Break, Bulls Smell Momentum Shift

[Ben Graham]

Solana started a recovery wave above the $120 zone. SOL price is now consolidating and faces hurdles near the $128 zone.

• SOL price started a decent recovery wave above $122 and $124 against the US Dollar.
• The price is now trading above $125 and the 100-hourly simple moving average.
• There is a key bearish trend line forming with resistance at $127 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could continue to move up if it clears $128 and $130.

Solana Price Faces Resistance

Solana price remained stable and started a decent recovery wave from $117, like Bitcoin and Ethereum. SOL was able to climb above the $120 level.

There was a move above the 50% Fib retracement level of the downward move from the $134 swing high to the $117 low. The bulls even pushed the price above $125. However, the bears remained active near $127. There is also a key bearish trend line forming with resistance at $127 on the hourly chart of the SOL/USD pair.

Solana is now trading above $125 and the 100-hourly simple moving average. On the upside, immediate resistance is near the $127 level, and the 61.8% Fib retracement level of the downward move from the $134 swing high to the $117 low.

The next major resistance is near the $130 level. The main resistance could be $135. A successful close above the $135 resistance zone could set the pace for another steady increase. The next key resistance is $144. Any more gains might send the price toward the $150 level.

Another Decline In SOL?

If SOL fails to rise above the $130 resistance, it could continue to move down. Initial support on the downside is near the $125 zone. The first major support is near the $122 level.

A break below the $122 level might send the price toward the $117 support zone. If there is a close below the $117 support, the price could decline toward the $108 zone in the near term.

Technical Indicators

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

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

Major Support Levels – $125 and $122.

Major Resistance Levels – $128 and $130.