Solana (SOL) Back on Track: Is The Uptrend Here to Stay?

by

Solana has initiated an upward surge from the $215 region. The SOL price is climbing steadily and could potentially push past the hurdles at $240 and $250.

  • SOL price started a fresh increase after it settled above the $222 level against the US Dollar.
  • The price is now trading above $230 and the 100-hourly simple moving average.
  • There was a break above a key bearish trend line with resistance at $232 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 $240 zone.

Solana Price Eyes Fresh Surge

The cost of Solana has established a strong foundation, initiating a new growth spurt that surpassed the $220 mark, similar to Bitcoin and Ethereum. Notably, it overcame the resistance at $225 and $230 levels with a substantial uptick.

In simpler terms, the price of Solana (SOL) climbed beyond the 50% Fibonacci retracement mark from its peak at $246 to its low at $215, and also surpassed a significant bearish trendline with resistance at $232 on the hourly chart.

As an analyst, I’m observing that Solana’s current trading price surpasses the $235 mark and is above its 100-hour moving average. On the positive side, there appears to be resistance for the price around the $240 level or at the 76.4% Fibonacci retracement point of the downward trend from the peak of $246 to the trough of $215.

Moving forward, the next significant barrier for upward movement lies around $246, and potentially even $250. If we manage to surpass these levels on a closing basis, it could pave the way for continued growth, potentially pushing prices towards $265. Any further gains might propel the price closer to $280.

Another Decline in SOL?

Should SOL not manage to surpass the $240 barrier, a potential drop might ensue. A likely cushion during such a decline could be found around the $230 mark or at the 100-hour simple moving average. The initial significant support lies at approximately $220 level.

Dropping beneath the $220 mark might push the price down to around $215. Should the closing price fall below the $215 support, it may lead to a quick drop towards the $200 support level in the immediate future.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is gaining pace in the bullish zone.

Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.

Major Support Levels – $230 and $220.

Major Resistance Levels – $240 and $250.

Read More

2024-12-04 08:29