Solana (SOL) rallied toward the $300 level before it corrected gains. It is now consolidating above $220 and might aim for a fresh increase.

Solana Price Holds Key Uptrend Support

In the previous analysis, we discussed the chance of a strong upward move in Solana. It did start a steady increase after it settled above the $240 and $260 resistance levels. There was a move toward the $300 level.

A high was formed at $295 before SOL saw a downside correction, like Bitcoin and Ethereum. There was a move below the $280 and $265 support levels. The price even spiked below the 50% Fib retracement level of the upward move from the $169 swing low to the $295 high.

Solana price daily chart | Source: SOL/USD on TradingView.com

Solana is now consolidating above the $220 level and the 50-day simple moving average (blue). There is also a key declining channel or a possible bull flag forming with support at $230 on the daily chart.

If SOL stays above the channel support, it could start a fresh increase. Immediate resistance sits near the $250 level. The first major resistance sits near the $260 level. The main resistance sits at the channel zone at $265.

A clear move above the $265 level could send the price toward the next key resistance at $280. A successful daily close above the $280 resistance might open the doors for a test of the $300 barrier. Any more gains might send the price toward the $320 level in the coming days.

Solana network continues to grow and recently, Nous Research announced Nous Psyche built on Solana – a cooperative training network for generative AI.

Another Decline In SOL?

Conversely, Solana might struggle to start a fresh increase above $250 and there could be another bearish reaction. Immediate support is near the $230 level and the channel zone. The first major support sits near the $220 level or the 61.8% Fib retracement level of the upward move from the $169 swing low to the $295 high.

The main support is now forming near the $210 zone and the 50-day simple moving average (blue), below which the price might gain bearish momentum. The next support sits at $175. Any more losses could send SOL toward the $155 support zone in the near term.

Overall, Solana price is consolidating above the $230 and $220 support levels. To start a fresh surge, SOL must settle above the $250 and $265 resistance levels. If not, it might dip and retest the $210 support.

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