Solana (SOL) Momentum Builds: $250 Could Just Be The Beginning
Solana is starting a new leg higher from the $220 area. SOL price is rising and is targeting a sustained rise above the $250 resistance.
- SOL price started a fresh rise after rising above $225 against the US dollar.
- The price is currently above $240 and the 100 hourly simple moving average.
- There is a break above a key bearish trend line with resistance at $240 on the hourly chart of the SOL/USD pair (data source: Kraken).
- If the bulls break above the $250 area, the pair may start a fresh leg higher.
Solana Price Expected to Keep Rising
Solana price formed a support base and started a fresh rise above $225, e.g. Bitcoin and Ethereum. There was considerable gains above the $230 and $232 resistance levels.
The price broke above the 50% Fib retracement level of the downward move from the swing high of $256 to low of $221. Additionally, there was a break above a key bearish trend line with resistance at $240 on the hourly chart of the SOL/USD pair.
Solana is currently trading above $240 and the 100 hourly simple moving average. On the upside, the price faces resistance at the $244 level or near the 61.8% Fib retracement level of the downward move from the $256 swing high to $221 low.
The next major resistance is near $248. The main resistance level is likely to be $250. A successful close above the $250 resistance could set the stage for another solid move higher. The next key resistance level is $265. In case of further gains, the price may rise towards the $278 level.
Does SOL support Dips?
If SOL fails to break above the $248 resistance, a downside correction may begin. Initial support on the downside is near the $240 level or the 100 hourly simple moving average. The first major support level is located near $232.
A break below the $232 level could push the price towards the $230 zone. If the price closes below the $230 support, the price may drop towards the $220 support in the short term.
Technical indicators
Hourly MACD – The MACD for SOL/USD is accelerating in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major support levels – $240 and $232.
Major resistance levels – $248 and $250.
