Solana (SOL) corrected gains and tested the $175 support. It is now consolidating and facing key hurdles near the $215 level.

Solana Price Eyes Key Upside Break

In the past few days, Solana saw a downside correction as discussed in the previous analysis. There was a move below the $230 and $212 levels, like Bitcoin and Ethereum. The bears even pushed the price below the $200 support zone and the 50-day simple moving average (blue).

SOL price declined gained pace below the 50% Fib retracement level of the upward move from the $120 swing low to the $264 high. However, the bulls were active near the $175 support zone.

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

Solana is now consolidating above the $175 level and the 61.8% Fib retracement level of the upward move from the $120 swing low to the $264 high. There was a minor recovery above the $185 and $190 levels.

The bulls even attempted to clear the $200 resistance zone but failed. If they continue to struggle, there could be another bearish reaction. Immediate support is near the $185 level. The first major support sits near the $180 level.

The main support is now forming near the $175 zone. There is also a key contracting triangle forming with support at $175 on the daily chart, below which the price might gain bearish momentum. The next support sits at $155. Any more losses could send SOL toward the $120 support zone in the near term.

Fresh Increase In SOL?

Conversely, Solana could see a fresh increase. Immediate resistance sits near the $200 level. The first major resistance sits near the $215 level and the triangle’s upper trend line. A clear move above the $215 level could send SOL toward the next key resistance at $230.

A successful daily close above the $230 resistance might open the doors for a test of the $265 barrier. If there is a clear move above the $265 barrier, the price could rise toward the $300 level in the coming days.

Recently, Solana shared five takeaways from Electric Capital’s Developer report, highlighting Solana as the No. 1 ecosystem for new developers in 2024.

Overall, Solana price is consolidating and might see a dip toward the $205 support or even $195. To start a fresh surge, SOL must settle above the $230 pivot level.