Solana started a fresh increase above the 5 resistance. SOL price is up nearly 10% and might continue to rise if it clears the 8 resistance.
- SOL price jumped higher and tested the 8 resistance against the US Dollar.
- The price is now trading above 0 and the 100-hourly simple moving average.
- There is a key bullish trend line forming with support at 5 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could clear the 8 resistance unless it fails to stay above 5.
Solana Price Starts Fresh Surge
Solana price formed a support base near the 6 level and started a fresh increase. SOL followed recent Bitcoin and Ethereum surge to move into a positive zone.
There was a move above the 5 and 0 resistance levels. The price even tested the 8 resistance. A high was formed at 8.00 and the price is now consolidating gains above the 23.6% Fib retracement level of the upward move from the 6 swing low to the 8 high.
Solana is now trading above 8 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support at 5 on the hourly chart of the SOL/USD pair.
Immediate resistance is near the 5 level. The next major resistance is near the 8 level. A successful close above the 8 resistance could set the pace for another major increase. The next key resistance is near 5. Any more gains might send the price toward the 0 level.
Are Dips Supported in SOL?
If SOL fails to rally above the 8 resistance, it could start a downside correction. Initial support on the downside is near the 2 level. The first major support is near the 8 level and the trend line.
The 50% Fib retracement level of the upward move from the 6 swing low to the 8 high is also at 8, below which the price could test 5. If there is a close below the 5 support, the price could decline toward the 6 support in the near term.
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 – 8, and 2.
Major Resistance Levels – 5, 2, and 0.