Solana (SOL) is showing signs of resilience after initiating a recovery from the $128 mark, but its upward momentum is currently challenged by significant resistance levels. The cryptocurrency's price is now consolidating, navigating critical hurdles near the $142 zone as investors watch for definitive breakthroughs.
Solana's Resilient Recovery
Following a dip, Solana demonstrated a notable recovery wave, climbing steadily above the $132 and $135 thresholds against the US Dollar, mirroring the positive movements seen in Bitcoin and Ethereum. This resurgence was marked by a break above the 23.6% Fib retracement level of a recent downtrend and a crucial bearish trend line near $137 on its hourly chart. Currently, SOL is trading above $135 and the 100-hourly simple moving average, with its MACD gaining bullish momentum and the Hourly RSI positioned above the 50 level, indicating a potential for further gains. For Solana to sustain its upward trajectory, it must decisively overcome immediate resistance near $142, followed by the formidable $145 mark. A successful close above these levels could pave the way for a rally towards the $150 resistance, which aligns with the 50% Fib retracement of its recent high-to-low move. Should this key resistance be breached, SOL could target $162 and potentially even $165, signaling a stronger bullish trend.
Potential Downside Risks
Despite the recent recovery, Solana faces risks if it fails to maintain its position above key support levels. Initial support is found near the $135 zone, with the primary major support at $132. A break below this $132 level could trigger a decline towards the $125 support zone. Should selling pressure intensify and the price close below $125, Solana could potentially fall further, targeting the $112 zone in the near term. Investors should closely monitor these support and resistance levels for Solana's next significant price movement.
