Solana (SOL) Holds Support Post-Gains, Testing Bull Conviction

[Ben Graham]

Solana started a fresh increase above the $135 zone. SOL price is now consolidating above $135 and might aim for more gains above the $140 zone.

• SOL price started a fresh upward move above the $135 and $138 levels against the US Dollar.
• The price is now trading above $135 and the 100-hourly simple moving average.
• There is a contracting triangle forming with support at $138 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The pair could extend gains if it clears the $140 resistance zone.

Solana Price Eyes Another Increase

Solana price started a decent increase after it settled above the $130 zone, like Bitcoin and Ethereum. SOL climbed above the $135 level to enter a short-term positive zone.

The price even smashed the $140 resistance. The bulls were able to push the price above $142. Recently, there were a couple of swing moves and the price dipped below the 50% Fib retracement level of the recent upward move from the $136 swing low to the $141 high.

Solana is now trading above $138 and the 100-hourly simple moving average. Besides, there is a contracting triangle forming with support at $138 on the hourly chart of the SOL/USD pair.

On the upside, the price is facing resistance near $140. The next major resistance is near the $142 level. The main resistance could be $145. A successful close above the $145 resistance zone could set the pace for another steady increase. The next key resistance is $150. Any more gains might send the price toward the $155 level.

Downside Break In SOL?

If SOL fails to rise above the $142 resistance, it could start another decline. Initial support on the downside is near the $138 zone, the trend line, and the 76.4% Fib retracement level of the recent upward move from the $136 swing low to the $141 high. The first major support is near the $136 level.

A break below the $136 level might send the price toward the $130 support zone. If there is a close below the $130 support, the price could decline toward the $120 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 above the 50 level.

Major Support Levels – $138 and $136.

Major Resistance Levels – $140 and $142.