Solana Surges Past $200: Will the Rally Hold?

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As an analyst, I observed that Solana surged past its previous resistance of $188, currently trading above the $200 mark. However, it may face challenges in further escalation beyond the $205 level.

  • SOL price started a fresh increase above the $185 and $188 levels against the US Dollar.
  • The price is now trading above $195 and the 100-hourly simple moving average.
  • There is a connecting bullish trend line forming with support at $196 on the hourly chart of the SOL/USD pair (data source from Kraken).
  • The pair could start a fresh increase if the bulls clear the $205 zone.

Solana Price Reclaims $200

As an analyst, I’ve noticed a significant upward trend in the Solana price, which has established a strong base above $175. Reminiscent of Bitcoin and Ethereum‘s recent movements, this digital currency is climbing steadily. Notably, it surmounted the resistance levels at $180 and $185 with relative ease.

Initially, the bulls propelled the price beyond the $188 barrier and later, past $200. A peak was reached at $206, and currently, the price is holding steady near a 23.6% Fibonacci retracement level during the rally from the $186 high to the $206 low.

Currently, Solana’s trading value surpasses $195 and aligns with its 100-hour moving average. Additionally, a bullish trend line is developing on the hourly SOL/USD chart, providing support at approximately $196. As for potential upward movement, there seems to be resistance around the $205 mark.

Moving forward, the next significant hurdle for the price lies around the $212 mark. If we surpass this level, the primary obstacle could be at $220. Overcoming this barrier with a successful close would likely pave the way for further incremental growth. The following crucial resistance is set at $232. Should the price continue to rise, it may push towards the $245 region.

Another Decline in SOL?

Should SOL not surpass the $205 barrier, it may trigger another drop. The initial support might be found in the $196 region and along the trend line. The first significant support lies at around the $190 mark or the 76.4% Fibonacci retracement level of the upward movement from the $186 peak to the $206 low.

Dropping beneath the $190 mark could potentially push the price down to the $185 area. Should we see a closing below the $185 resistance, there’s a possibility that the price might fall towards the $172 support level in the short term.

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 above the 50 level.

Major Support Levels – $196 and $190.

Major Resistance Levels – $205 and $212.

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2025-01-16 19:17