Solana started a fresh increase above the 2 resistance. SOL price is up nearly 8% and might continue to rise if it clears the 0 resistance.
- SOL price recovered higher and tested the 0 resistance against the US Dollar.
- The price is now trading above 52 and the 100 simple moving average (4 hours).
- There was a break above a key bearish trend line with resistance at 4 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
- The pair could clear the 0 resistance unless it fails to stay above 6.
Solana Price Eyes More Upsides
Solana price formed a support base near the 8 level and started a fresh increase. SOL outperformed Bitcoin and Ethereum and moved into a positive zone above the 4 level.
There was a break above a key bearish trend line with resistance at 4 on the 4-hour chart of the SOL/USD pair. The pair even cleared the 50% Fib retracement level of the downward wave from the 4.40 swing high to the 8.00 low.
However, the bears are active near the key hurdle at 0. Solana is now trading above 5 and the 100 simple moving average (4 hours). Immediate resistance is near the 0 level or the 76.4% Fib retracement level of the downward wave from the 4.40 swing high to the 8.00 low.
The next major resistance is near the 5 level. A successful close above the 5 resistance could set the pace for another major increase. The next key resistance is near 2. Any more gains might send the price toward the 5 level.
Another Decline in SOL?
If SOL fails to rally above the 0 resistance, it could start another decline. Initial support on the downside is near the 6 level and the 100 simple moving average (4 hours).
The first major support is near the 2 level, below which the price could test 8. If there is a close below the 8 support, the price could decline toward the 5 support in the near term.
Technical Indicators
4-Hours MACD – The MACD for SOL/USD is gaining pace in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major Support Levels – 6, and 2.
Major Resistance Levels – 0, 5, and 2.