Solana (SOL) Encounters Barriers: Is a Fresh Surge Still Possible?
Solana started a downside correction below the $230 area. SOL price is currently recovering losses and faces a hurdle near $220.
- SOL price started a new leg higher against the US dollar after testing the $204 area.
- The price is currently below $230 and the 100 hourly simple moving average.
- A key bearish trend line is forming with resistance at $220 on the hourly chart of the SOL/USD pair (Data source: Kraken).
- If the bulls break above the $220 area, the pair may start a fresh leg higher.
Solana Price Eyes an Upside Breakout
Solana price formed a support base and started a fresh increase from the $204 level, e.g. Bitcoin and Ethereum. There was considerable gains above the $210 and $212 resistance levels.
The price broke above the 23.6% Fib retracement level of the downward move from the swing high of $243 to low of $203. However, the price currently faces obstacles near $220. Solana is currently trading above $218 and the 100 hourly simple moving average.
On the upside, the price faces resistance near $220. There is also a key bearish trend line forming with resistance at $220 on the hourly chart of the SOL/USD pair.
The next major resistance is near $224, the 50% Fibonacci retracement level of the downside move from the $243 swing high to $203 low. The main resistance is likely to be $228. A successful close above the $228 resistance could set the stage for another solid move higher. The next key resistance level is $235. If there is further upside, the price may rise towards the $250 level.
SOL drops again?
If SOL fails to break above the $220 resistance, another decline could begin. Initial support on the downside is near $212. The first major support level is near $205.
A break below the $205 level could push the price towards the $200 zone. If the price closes below the $200 support, the price may drop towards the $188 support in the near 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 – $212 and $205.
Major resistance levels – $220 and $228.
