Solana tested the 8 zone before it started a recovery wave. SOL price must clear the 0 and 5 resistance levels to start a steady increase.
- SOL price is eyeing an upside break above the 0 resistance against the US Dollar.
- The price is now trading above 5 and the 100-hourly simple moving average.
- There is a connecting bullish trend line forming with support at 6 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could clear the 2.50 resistance to start a short-term uptrend.
Solana Price Eyes Steady Increase
Solana price extended losses below the 0 level like Bitcoin and Ethereum. SOL even declined below the 2 support before the bulls appeared near the 8 level. A low was formed at 8.01 and the price recently started a decent recovery wave.
The price was able to clear the 2 and 5 resistance levels. There was a move above the 50% Fib retracement level of the downward move from the 1.89 swing high to the 8.01 low. Solana price is now trading above 5 and the 100-hourly simple moving average. There is also a connecting bullish trend line forming with support at 6 on the hourly chart of the SOL/USD pair.
Immediate resistance is near the 0 level. The next major resistance is near the 2.50 level or the 61.8% Fib retracement level of the downward move from the 1.89 swing high to the 8.01 low.
A successful close above the 2.50 resistance could set the pace for another major increase. The next key resistance is near 6.50. Any more gains might send the price toward the 0 level.
Another Decline in SOL?
If SOL fails to rally above the 2.50 resistance, it could start another decline. Initial support on the downside is near the 5 level and the trend line.
The first major support is near the 2 level, below which the price could test 8. If there is a close below the 2 support, the price could decline toward the 5 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 near the 50 level.
Major Support Levels – 5, and 2.
Major Resistance Levels – 2.50, 6.50, and 0.