Solana (SOL) Encounters Barriers: Is a Fresh Surge Still Possible?

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As a seasoned crypto investor with battle-tested nerves and a knack for spotting trends, I see Solana (SOL) eyeing an upside break after forming a support base at $204 – much like how Bitcoin and Ethereum have been behaving lately. The price is currently hovering above $218, a positive sign, but the hurdles near $220 are proving to be formidable, with a bearish trend line forming overhead at this level.

Solana recently experienced a decline and dipped beneath the $230 region. However, its price is currently regaining some of the lost ground but is encountering resistance around the $220 mark.

  • SOL price started a fresh increase after it tested the $204 zone against the US Dollar.
  • The price is now trading below $230 and the 100-hourly simple moving average.
  • There is a key bearish trend line forming with resistance at $220 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 $220 zone.

Solana Price Eyes Upside Break

The cost of Solana established a solid foundation and subsequently rose from the $204 point, much like Bitcoin and Ethereum did. After a considerable rise, it surpassed the resistance levels at $210 and $212.

The price recently surpassed the 23.6% Fibonacci retracement point following a downward trend from the peak of $243 to the low of $203. Yet, it now encounters several obstacles close to the $220 mark. At this moment, Solana is trading above $218 and higher than its 100-hour moving average.

Positively speaking, the price appears to be encountering obstacles as it approaches the $220 mark. Additionally, there seems to be a significant bearish trendline developing on the hourly chart for the SOL/USD pair, with resistance at $220.

Moving forward, a significant barrier for potential growth lies around the $224 mark or at the 50% Fibonacci retracement point of the fall from the peak of $243 to the trough of $203. This major hurdle might also be found at $228. Overcoming and closing above $228 could pave the way for continued upward momentum. The subsequent key resistance is anticipated at $235, and further advancements may propel the price towards $250.

Another Decline in SOL?

Should SOL not manage to surpass the $220 barrier, a potential drop may ensue. A possible initial floor in this scenario would be around $212. The significant support level lies at approximately $205.

If the price drops beneath $205, it may head towards the $200 region. Should the closing price fall below the $200 support, there’s a possibility of a short-term decline towards the $188 support level.

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 – $212 and $205.

Major Resistance Levels – $220 and $228.

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2024-12-11 08:10