Solana found support near the 0 zone. SOL price is slowly rising and might gain bullish momentum if it clears the 2 resistance zone.
- SOL price corrected lower and tested the 0 support zone against the US Dollar.
- The price is now trading above 5 and the 100-hourly simple moving average.
- There was a break above a key bearish trend line with resistance at 4 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could clear the 2 resistance unless it fails to stay above 5.
Solana Price Could Gain Momentum
Solana price formed a support base near the 0 level and started a recovery wave. SOL underperformed Bitcoin and Ethereum but managed to clear the 5 resistance.
There was a break above a key bearish trend line with resistance at 4 on the hourly chart of the SOL/USD pair. There was even a spike above the 0 zone and the 50% Fib retracement level of the downward move from the 1 swing high to the 0 low.
Solana price is now trading above 5 and the 100-hourly simple moving average. Immediate resistance is near the 0 level. The next major resistance is near the 1 level. A successful close above the 2 resistance could set the pace for another major increase.
The next key resistance is near 6 or the 76.4% Fib retracement level of the downward move from the 1 swing high to the 0 low. Any more gains might send the price toward the 0 level.
Are Dips Supported in SOL?
If SOL fails to rally above the 2 resistance, it could start another decline. Initial support on the downside is near the 7 level.
The first major support is near the 5 level, below which the price could test 0. If there is a close below the 0 support, the price could decline toward the 0 support in the near 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 below the 50 level.
Major Support Levels – 5, and 0.
Major Resistance Levels – 0, 2, and 0.