Solana's $100 Battle: Can SOL Break Key Resistances or Face a Deeper Dip?
Solana (SOL) is currently undergoing a critical test, maintaining a recovery push above the $100 mark after failing to settle above the $112 level. The cryptocurrency's price action is under intense scrutiny as it attempts to overcome significant resistance points, hinting at a potential rally if successful, or a renewed decline if key supports falter.
Navigating Key Resistance Zones
Following a period of extended losses, Solana initiated a notable recovery wave, climbing above the $100 and $102 levels, mirroring similar movements in Bitcoin and Ethereum. However, this bullish momentum is now facing a formidable challenge below the $110 threshold and the 100-hourly simple moving average. A crucial bearish trend line is forming with resistance at $108 on the hourly chart. For SOL to sustain its upward trajectory, it must decisively clear the immediate resistance at $108, followed by the $110 mark and the 50% Fibonacci retracement level of its recent downward swing from $119 to $95.81. A successful breach and close above the $115 resistance zone could pave the way for a steady climb towards $122 and potentially $125.
The Looming Threat of Further Decline
Conversely, the immediate outlook for Solana could turn bearish if it fails to surpass the $108 resistance. Initial downside support is identified near the $101 zone, with a more critical support level at $95. A breach below $95 could accelerate the price's descent towards the $88 support. Should SOL close below $88, it faces a significant risk of declining further, potentially reaching the $80 zone in the near term, indicating a deeper correction for the altcoin. Technical indicators present a mixed but cautiously optimistic picture. The Hourly MACD for SOL/USD is gaining momentum in the bullish zone, while the Hourly Relative Strength Index (RSI) is holding above the 50 level, suggesting underlying buying interest. However, these signals are balanced against the strong resistance levels that the asset must overcome to confirm a sustainable recovery.
