Solana's Rally Cools: Eyes on Key Resistance for Next Move
Solana (SOL) has recently shown remarkable bullish momentum, surging past significant price thresholds against the US Dollar. After a notable rally, the cryptocurrency is now in a consolidation phase, prompting market observers to watch closely for its next directional move, particularly as it approaches critical resistance levels.
Sustained Gains and Consolidation
The SOL price initiated a robust upward trajectory, successfully breaking above the $135 and $140 marks. This strong performance positioned Solana above its 100-hourly simple moving average, indicating a healthy short-term bullish trend. Following this ascent, the asset overcame the $140 resistance and pushed further towards $142. Currently, SOL is consolidating these recent gains above the 23.6% Fibonacci retracement level of its impressive run from a $123 low to a $146 high. A bullish trend line is also forming, offering reliable support around the $143 level on the hourly chart.
Crucial Resistance Points Ahead
The immediate hurdle for Solana's continued rally is the $145 resistance zone. A definitive break and close above this level could pave the way for further upward movement, targeting successive resistance points at $148 and potentially reaching the significant $150 mark. Market analysts suggest that a sustained breach above $150 would be a strong bullish signal, potentially setting the stage for an extended rally towards the $162 level, and even opening the door for a push towards $180 in the coming sessions.
Potential Pullback and Support Levels
However, should Solana fail to overcome the $145 resistance, the asset could face a fresh decline. Initial downside support lies near the $143 trend line. A more critical support zone is identified around $135, which corresponds to the 50% Fibonacci retracement level of its recent upward move. A break below $135 might prompt a fall towards the $128 support zone. Furthermore, a sustained close beneath $128 could lead to a deeper correction, potentially bringing the price down to the $120 level in the near term. Technical indicators show the Hourly MACD losing some bullish momentum, while the Hourly Relative Strength Index (RSI) remains above 50, suggesting a balanced market sentiment during this consolidation.
