Solana Price Rebounds 20%: Why SOL Bulls Should Hold Their Excitement
Key Takeaways:
- SOL price started a decent recovery from the $120 support zone.
- A major bearish trend line forms with resistance at $155.00 on the daily chart.
- Solana could struggle to clear the $155 resistance and the 50-day simple moving average (blue).
NEW DELHI (CoinChapter.com) — Solana (SOL) is up 20% from the $120 support zone. However, the bulls must be cautious as the price reaches the key hurdle at $155.
Solana Price Grinds Higher
After a steady decline, the Solana price found strong support near the $120 zone. The bulls were once again active and protected the key support at $120. A low was formed at $122.75, and the price started a decent recovery wave.
Recently, VanEck filed for the first Solana exchange-traded fund (ETF) in the US. It sparked a bullish reaction and SOL price climbed above the $135 and $138 resistance levels. There was a move above the 23.6% Fib retracement level of the downward move from the $188.55 swing high to the $122.75 low.
The Solana ecosystem continues to expand. This past week saw the release of blockchain links aka blinks, allowing users to pay, swap, mint, donate, and vote using Solana.
Solana price has been up 20% in a few days, outperforming Bitcoin and Ethereum, and it even breached the $145 mark. However, the bulls need to be careful as the price approaches the $155 resistance zone and the 50-day simple moving average (blue). On the daily chart, a major bearish trend line is forming, with resistance at $155.00.
The trend line coincides with the 50% Fib retracement level of the downward move from the $188.55 swing high to the $122.75 low. A successful daily close above the trend line resistance and the 50-day simple moving average (blue) could set the stage for a steady surge.
The next major resistance is at $172, above which the bulls might aim for $188. A daily close above the $188 resistance could spark another rally in SOL toward the $200 level.
Another Decline In SOL?
Conversely, Solana might fail to clear the $155 resistance and react to the downside. Immediate support is near the $142 level. The first major support is seen near $138 and the recent breakout zone. The next major support is near the trend line at $135.
If the bulls fail to protect $135, the price could dive toward the $122 support. The main breakdown support sits near the $120 zone. Any more losses might lead the price toward the $100 level.
Overall, the Solana price is attempting a fresh increase above the $145 level. Having said that, Solana must surpass $155 to continue higher in the coming days.
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