Solana ($SOL ) has maintained stability above the critical $175 level and is now attempting a recovery. The cryptocurrency is facing resistance near the $200 and $205 zones as it seeks to regain bullish momentum.
Key Highlights:
SOL price initiated a recovery after testing the $175 support zone against the US Dollar.
The price is trading above $190 and the 100-hourly simple moving average.
A breakout above a connecting bearish trend line near $185 was observed on the hourly chart of the SOL/USD pair (data source: Kraken).
The pair could resume its upward trajectory if it overcomes resistance near the $205 level.
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Solana Price Targets an Upside Break
After forming a strong support base near $175, Solana’s price rebounded alongside Bitcoin and Ethereum. It surged past the $190 and $192 resistance levels, signaling a shift in sentiment.
A breakout above a key bearish trend line at $185 on the hourly chart further strengthened the bullish outlook. The price climbed to test the 50% Fibonacci retracement level of the decline from the $228 swing high to the $175 low.
However, significant resistance has emerged near $200. Currently, SOL is trading above $190, supported by the 100-hourly simple moving average. On the upside, the immediate resistance lies at the $202 level.
The next critical resistance is at $208, aligned with the 61.8% Fibonacci retracement level of the downward move from $228 to $175. A sustained close above $215 could pave the way for further gains. If the price clears the $220 zone, it may target $235, with potential for a rally to $250 in the near term.
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Risk of a Downside Move
If Solana fails to surpass the $208 resistance, it risks another pullback. Initial support is at the $195 level, with the first major support near $188.
A break below $180 could expose the price to the $175 support zone. A sustained decline below $175 might accelerate losses, pushing the price toward $162 in the short term.
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Technical Indicators
Hourly MACD: Gaining momentum in the bullish zone.
Hourly RSI: Positioned above the 50 level, indicating positive sentiment.
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Key Levels to Watch
Support Levels: $195, $188, $175
Resistance Levels: $202, $208, $215
Solana’s ability to clear the $208 resistance will be critical for further bullish momentum. Traders should closely monitor the $175 support zone for any signs of a potential reversal.
