Solana is up over 10% and gaining pace above $105. SOL price seems to be gearing up for an upside break above the USD 125 resistance zone.
- SOL price started a new rally above the USD 100 resistance against the US dollar.
- The price is now trading above USD 105 and the 100 simple moving average (4 hours).
- There was a break above a key contracting triangle with resistance near $104 on the 4-hour chart of the SOL/USD pair (Kraken data source).
- The pair could continue to rise if there is a clear move above the $118 resistance.
Solana Price starts new rally
After a downward correction, Solana found support near the $93.50 level. SOL formed a base and recently started a new rise above the USD 100 resistance.
It is up over 10% today, outperforming Bitcoin and Ethereum. There was a move above the 50% Fib retracement level of the downward move from the $126.13 swing high to the $93.50 low. Additionally, there was a break above a key contracting triangle with resistance around $104 on the 4-hour chart of the SOL/USD pair.
SOL is now trading above $105 and the 100 simple moving average (4 hours). On the upside, immediate resistance is around the $114 level. The first major resistance is near the $118 level or the 76.4% Fib retracement level of the downward move from the $126.13 swing high to the $93.50 low.
Source: SOLUSD on TradingView.com
The main resistance is now near $125. A successful close above the $125 resistance could set the pace for another major rally. The next major resistance is near USD 138. Any further gains could send the price towards the USD 145 level.
Another drop in SOL?
If SOL fails to break above the USD 118 resistance, a downside correction could occur. The initial downside support is near the $108 level.
The first major support is near the $100 level or the 100 simple moving average (4 hours), below which the price could test $94. If there is a close below the $94 support, the price could fall towards the $80 support in the near term.
Technical indicators
4-hour MACD – The MACD for SOL/USD is gaining speed in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major support levels – USD 108 and USD 100.
Major resistance levels – $118, $125 and $138.
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