Solana (SOL) Picks Up Speed, Raising Talk of a New Upside Run

Overview

Solana has recently experienced a notable increase in its price, surpassing key resistance levels. The cryptocurrency is currently consolidating above $138, with potential for further gains if it breaks through the $142 resistance zone. This upward movement comes after a period of correction, and its implications could influence market dynamics.

Recent Price Movement

Solana’s price began a fresh upward trajectory after moving above the $136 zone. It is now trading above $138 and has surpassed the 100-hourly simple moving average. This movement indicates a positive shift in market sentiment for Solana, particularly as it has managed to outperform both Bitcoin and Ethereum during this period.

The price initially corrected from a high near $144 but maintained stability above the $130 mark. After forming a low around $132, Solana began a renewed upward rally. It successfully climbed above the $135 level, entering a short-term positive zone, and surpassed the 50% Fibonacci retracement level of the previous downward movement from a swing high of $143 to a low of $132.

A significant technical milestone was reached with the break above a bearish trend line that featured resistance at $137 on the hourly chart of the SOL/USD pair. Currently, Solana faces resistance near the $140 mark and the 76.4% Fibonacci retracement level from the earlier downward move. The next major resistance level is situated around $142, with additional resistance anticipated at $145. A successful close above the $145 resistance could potentially pave the way for further increases, targeting the $150 level and beyond.

However, the price action is not without risks. If Solana fails to breach the $140 resistance, it may experience a decline. Initial support is identified near the $138 zone, with major support levels at $135 and $132. Should the price close below the $132 support, it could further decline toward the $124 level.

Technical Indicators

The technical indicators for Solana show a bullish trend. The hourly MACD is gaining momentum within the bullish zone, suggesting a strengthening upward movement. Additionally, the Relative Strength Index (RSI) for SOL/USD remains above the 50 level, indicating that buying pressure is prevailing.

Major Support and Resistance Levels

• Support Levels:

  • $138
  • $135

• Resistance Levels:

  • $140
  • $142

From author

The recent price actions of Solana highlight the cryptocurrency’s resilience and ability to recover from corrections. The technical indicators support a bullish sentiment, but the challenges posed by resistance levels suggest that traders should remain cautious. The interplay between support and resistance will be crucial in determining Solana’s trajectory in the near term.

Impact on the crypto market

• Solana’s performance may attract investor interest, potentially leading to increased trading volume.
• A successful breakout above resistance levels could instill confidence in the broader crypto market.
• The ability of Solana to outperform major cryptocurrencies like Bitcoin and Ethereum may influence market sentiment and trading strategies.
• The technical indicators suggest a strong bullish sentiment, which could prompt speculative trading.
• Price movements in Solana could have a ripple effect, affecting investor behavior and market trends across other cryptocurrencies.