In recent days, Solana (SOL) has experienced a significant rally, surpassing the $60 resistance level against the US Dollar. With the price up by over 50% within a short period, investors are eagerly looking at the possibility of SOL continuing its upward trend towards the $75 mark. This article will delve into the technical analysis of SOL’s price movements and explore potential support and resistance levels.
Solana initiated a substantial rally after breaking above the $55 resistance level against the US Dollar. Currently, the price is trading above $60 and the 100 simple moving average (4 hours). On the 4-hour chart of the SOL/USD pair, a major bullish trend line is forming with support near $55.00. This positive trend suggests that SOL could further move upwards if it successfully clears the $68.00 resistance zone.
SOL’s recent rally has outperformed both Bitcoin and Ethereum, gaining bullish momentum after settling above $50. In just a few days, the price has surged by over 50%, reaching a high of around $67.21. Currently, the price is consolidating its gains and displaying positive signs above the 23.6% Fibonacci retracement level of the upward move from the $51.23 swing low to the $67.21 high.
On the upside, SOL faces immediate resistance near the $67.20 level, with the first major resistance level at $68.00. A successful close above the $65.00 resistance could potentially pave the way for a larger increase, with the next key resistance level at $70.00. Further gains might propel the price towards the $75.00 level.
Conversely, if SOL fails to recover above the $68.00 resistance, it may undergo a downside correction. The initial support on the downside can be found near the $62.50 level, followed by the first major support level at $57.75, which represents the 61.8% Fibonacci retracement level. If the price continues to decline, it could test the aforementioned major bullish trend line or even drop towards the $50.00 support level.
The 4-hour MACD for SOL/USD indicates a loss of pace in the bullish zone, suggesting a potential slowdown in the price movement. However, the 4-hour RSI (Relative Strength Index) for SOL/USD remains above the 50 level, indicating continued overall strength in the market.
With SOL’s impressive rally above the $60 resistance level and strong bullish momentum, investors are eyeing a potential movement towards the $75 level. However, it is important to watch out for potential resistance levels, such as $68.00 and $70.00. In the event of a downside correction, it is crucial to monitor key support levels, including $62.50 and $57.75. As always, investors should exercise caution and conduct thorough analysis before making any investment decisions.
