The price of Solana (SOL) is gaining bullish momentum and showing signs of a potential move above the $120 level. The recent surge in SOL price has outperformed Bitcoin and Ethereum, making it an appealing option for investors.
A Fresh Increase
SOL price initiated a fresh increase after establishing a base above the $94.00 support zone. This led to a decent rise above the $98 and $100 levels. Currently, SOL is up by nearly 10% and has surpassed the $110 level.
Resistance and Consolidation
The bulls are pushing the price towards the $115 resistance level, with a recent high at $114.98. However, there are no signs of upside exhaustion, as SOL is holding on to its gains above the 23.6% Fibonacci retracement level.
Key Levels to Watch
Solana is currently trading above $110 and the 100 simple moving average (4 hours), signifying a strong bullish trend. Furthermore, there is a key bullish trend line forming with support at $109.20 on the 4-hour chart of the SOL/USD pair. This trend line aligns with the 50% Fibonacci retracement level, adding to its significance.
In terms of resistance, SOL faces immediate resistance near the $115 level. If it successfully breaks through this level, the next significant resistance will be near $118. A close above the $118 resistance level could potentially trigger another major increase in SOL price. Looking further ahead, the next key resistance stands near $125, with the possibility of further gains leading to the $132 level.
Downside Risk
However, if SOL fails to rally above the $115 resistance level, a downside correction may occur. The initial support on the downside can be found near the $112.20 level. The first major support level lies near $109.20, coinciding with the aforementioned bullish trend line. If the price falls below this support, it may test the $105 level. A close below $105 could potentially lead to a decline towards the $100 support level in the near term.
The 4-hour MACD indicator for SOL/USD is gaining momentum in the bullish zone, indicating a favorable trend for traders. Additionally, the 4-hour RSI (Relative Strength Index) is above the 50 level, further supporting the bullish sentiment.
Disclaimer
As always, it is important to exercise caution and conduct thorough research before making any investment decisions. The opinions expressed in this article are for educational purposes only and do not necessarily reflect the views of NewsBTC. Investing in cryptocurrencies carries inherent risks, so please proceed with caution and use the information provided at your own risk.