Solana (SOL) Needs to Hold $200 for Next Rally: Will It Succeed?

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As a seasoned crypto investor with over a decade of experience in this volatile market, I’ve learned to read between the lines of technical analysis reports like this one.

Solana has recently surged past the $200 support level, but now it’s experiencing a correction in its upward movement. For further growth, it’s crucial that the SOL price maintains its position above the $200 mark.

  • SOL price started a fresh increase after it settled above the $188 level against the US Dollar.
  • The price is now trading below $212 and the 100-hourly simple moving average.
  • There was a break below a key bullish trend line with support at $210 on the hourly chart of the SOL/USD pair (data source from Kraken).
  • The pair could start a fresh increase if the bulls defend the $200 support zone.

Solana Price Starts Downside Correction

The value of Solana has established a solid foundation, leading to a new rise that surpassed the $185 mark, similar to both Bitcoin and Ethereum. Notably, there was a substantial surge past the obstacles at $195 and $200.

The price even cleared the $212 level. A high was formed at $225 and the price is now correcting gains. There was a move below the $220 and $212 levels. The price dipped below the 50% Fib retracement level of the upward move from the $195 swing low to the $225 high.

On the hourly chart for SOL/USD, we saw a drop beneath a significant bullish trendline that previously offered support at approximately $210. Currently, Solana is trading slightly lower than $212 and also falls short of the 100-hour simple moving average.

Currently, the price is drawing close to a significant support point around $200, which also coincides with the 76.4% Fibonacci retracement level from the price swing between $195 low and $225 high. On the flip side, there’s resistance forming near $208, with the next substantial resistance at approximately $212.

The main resistance could be $225. A successful close above the $225 resistance level could set the pace for another steady increase. The next key resistance is $242. Any more gains might send the price toward the $250 level.

More Losses in SOL?

If SOL doesn’t manage to break through the $212 barrier, there’s a possibility it might trend lower. The initial support for potential recovery can be found around the $202 mark. A more substantial support lies at approximately the $200 level.

Dropping beneath the $200 mark could push the price towards the $195 range. If we see a closing price below the $195 resistance level, it might lead to a short-term drop towards the $185 support level.

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 below the 50 level.

Major Support Levels – $200 and $195.

Major Resistance Levels – $208 and $212.

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2024-11-13 08:10