Solana recently tested the $138 zone before witnessing a recovery wave. In order to continue the upward momentum, the SOL price must clear the $150 and $155 resistance levels. Currently, SOL price is showing signs of breaking above the $150 resistance against the US Dollar. It is noteworthy that the price is now trading above $145 and the 100-hourly simple moving average.
Bullish Trend Line Formation
A connecting bullish trend line is forming with support at $146 on the hourly chart of the SOL/USD pair, according to data sourced from Kraken. This trend line indicates a potential uptrend for Solana price movement. Furthermore, the pair could potentially clear the $152.50 resistance level to initiate a short-term uptrend.
Following a decline below the $150 level, Solana price dropped below the $142 support before finding bullish support around the $138 level. A recent low was established at $138.01, after which the price started a decent recovery wave. Successfully surpassing the $142 and $145 resistance levels, the price also managed to move above the 50% Fib retracement level of the previous downward trend.
Currently trading above $145 and the 100-hourly simple moving average, Solana price faces immediate resistance near the $150 level. The next major resistance lies around $152.50, followed by $156.50. A breakout above the $152.50 resistance level could pave the way for a significant increase, potentially pushing the price towards $160. However, failure to rally past this resistance level might lead to another decline.
Support Levels and Bearish Scenario
On the downside, initial support is located near the $145 level along with the bullish trend line at $146. The first major support stands at $142, with a possible test of $138 if the price faces further downward pressure. A more significant decline could result in testing the $132 support, potentially leading to a drop towards $125 in the near term.
Looking at the technical indicators, the hourly MACD for SOL/USD is showing a slowdown in the bullish zone, indicating a possible consolidation phase. The hourly RSI is hovering near the 50 level, suggesting a balance between buying and selling pressure.
Overall, the recent price action of Solana indicates a critical juncture where a clear breakout above the resistance levels could trigger a significant uptrend. However, failure to overcome these hurdles might result in another round of downside movement. Traders and investors are advised to monitor the key levels closely for potential trading opportunities.
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