Solana, the popular cryptocurrency, has recently tested the support level of $135 before experiencing a correction in losses. However, the price of SOL is now on the rise and there is a possibility of gaining bullish momentum if it manages to surpass the resistance level of $144.
The current market situation sees SOL attempting to make a fresh move upwards from the $135 zone against the US Dollar. Unfortunately, the price is currently trading below $145 and the 100-hourly simple moving average. Nevertheless, there has been a positive development with a break above a key bearish trend line with resistance at $139 on the hourly chart of the SOL/USD pair sourced from Kraken. This breakout suggests that the pair could potentially gain bullish momentum if it successfully breaches the $145 resistance zone.
Solana’s price trajectory has been quite dynamic as it initially climbed above the $146 and $148 levels before encountering resistance at $152. Subsequently, the price experienced a decline, similar to Bitcoin and Ethereum, dropping below the $145 and $140 support levels. However, a low was formed at $135.39 and the price is currently on an upward trend. Notably, there was a significant movement above the $140 level, with the price climbing above the 23.6% Fib retracement level of the downward move from the $152 swing high to the $135.39 low.
The recent break above the key bearish trend line with resistance at $139 ensures that Solana is poised for a potential upward movement. Despite trading below $145 and the 100-hourly simple moving average, there are opportunities for the price to surge higher. With the current resistance near the $144 level, the price is close to the 50% Fib retracement level of the downward move from the $152 swing high to the $135.39 low. The next significant resistance is at $146, with the main obstacle lying at $150.
A successful breach above the $150 and $152 resistance levels could pave the way for a sustained uptrend, with the next key resistance level positioned at $162. Further gains could propel the price towards the $175 level, indicating a strong bullish momentum in the market.
On the flip side, if SOL fails to surpass the $144 resistance level, it may experience another decline. Initial support on the downside is expected near the $138 level, followed by a major support at $134. A break below the $135 level could potentially push the price towards the $132 zone, and a close below the $132 support might trigger a descent towards the $120 support level in the short term.
In terms of technical indicators, the hourly MACD for SOL/USD is showing an increase in bullish momentum, while the hourly RSI (Relative Strength Index) is above the 50 level, indicating a positive trend for Solana’s price movement.
In conclusion, Solana’s price action is currently at a critical juncture where a potential bullish breakout could lead to significant gains in the short term. However, failure to breach the key resistance levels may result in further downward movement. Traders and investors will need to monitor the market closely to capitalize on potential opportunities.
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