Solana begins a new upward trend above the $240 region. The SOL price is consolidating gains and may aim for an upward breakout of the $255 resistance level.
SOL price began a new round of increase after closing above $220 against the dollar.
The price is currently trading below $255 and the 100-hour simple moving average.
On the hourly chart for the SOL/USD pair, a short-term bearish trend line has formed with resistance at $252 (data source from Kraken).
If the bulls break above the $255 area, the pair may start a new upward trend.
Solana price is looking for more upward space
Solana price has formed a support base and started a new upward trend above the $232 level, outperforming Bitcoin and Ethereum. Strong fluctuations have occurred above the resistance levels of $245 and $250.
The price even broke the $260 level. A high was formed at $264, and the price is now consolidating gains. It has dropped below the $260 and $255 levels. The price has broken below the 264% Fibonacci retracement level from the swing low of $50 to the swing high of $230.
However, bulls are active near the $242 support level and the 61.8% Fibonacci retracement level, moving up from the swing low of $230 to the swing high of $264. Solana's current trading price is below $255 and the 100-hour simple moving average.
On the positive side, the price faces resistance near $252. There is also a short-term bearish trend line forming on the hourly chart for the SOL/USD pair, with resistance at $252.
The next major resistance level is near $255. Major resistance may be at $265. A successful close above the $265 resistance level could set the stage for another steady rise. The next key resistance level is $275. Any further gains could push the price closer to the $282 level.
Is the decline of SOL limited?
If SOL fails to rise above the $255 resistance level, it may start a downward correction. The initial support level on the downside is around $246. The first major support level is around $242.
A drop below the $242 level could drive the price towards the $238 region. If the closing price is below the $238 support level, the price may fall to the $230 support level in the short term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is accelerating in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major support levels – $246 and $242.
Major resistance levels – $255 and $260.