Solana (SOL) has demonstrated impressive strength in recent trading sessions, breaking above the key resistance at $35 against the US Dollar. With its price now trading above $35 and the 100 simple moving average (4 hours), SOL is showing promising signs of a potential fresh rally towards the $38 level. This surge comes as Solana outperforms both Bitcoin and Ethereum in the market.
On the 4-hour chart of the SOL/USD pair, a significant bullish trend line is forming with support near $33.30. This trend line further reinforces the positive outlook for SOL’s price movement. Meanwhile, on the upside, the immediate resistance is around the $36.50 level, followed by the major resistance level at $36.80. A successful break above the $36.80 resistance could pave the way for a more significant increase, potentially pushing SOL towards the $38 level. If the bullish momentum continues, SOL might even target the $40 level.
However, if SOL fails to overcome the $36.50 resistance, it could signal the start of a downside correction. In such a scenario, the initial support on the downside is expected near the $34.40 level. A more significant support level awaits near $33.30, which coincides with the trend line zone and the 76.4% Fibonacci retracement level of the recent upward move from the swing low of $32.34 to the high of $36.48. A close below the $33.30 support level might result in a decline towards the $32.00 support in the near term.
Strong Technical Indicators
Analyzing the technical indicators, the 4-hour MACD for SOL/USD is gaining momentum in the bullish zone, indicating the strength of the ongoing uptrend. Furthermore, the 4-hour Relative Strength Index (RSI) for SOL/USD is currently above the 50 level, suggesting a favorable market sentiment and potential for further gains.
Overall, SOL has displayed impressive bullish momentum, breaking key resistance levels and outperforming major cryptocurrencies like Bitcoin and Ethereum. With SOL’s price now above $35 and the 100 simple moving average (4 hours), coupled with the formation of a key bullish trend line, there is a strong possibility of a fresh rally towards the $38 resistance level. Nonetheless, caution is advised as a failure to surpass the $36.50 resistance could trigger a downside correction, with initial support levels near $34.40 and $33.30. Traders and investors should closely monitor SOL’s price action and key levels for potential trading opportunities.