Key Takeaways:
SOL price struggled to surpass $162 and corrected gains.
It is trading inside a key contracting triangle with support at $144 on the daily chart.
Solana must settle above the $162 resistance to start a fresh surge.
Solana (SOL) is consolidating above the $140 level. To start a fresh surge, the bulls need to push it above $162 and $165 in the coming days.
Solana Price Stuck Below Key Hurdles
In the past few sessions, the crypto market saw a fresh decline. Bitcoin, Ethereum, Solana, Dogecoin, PEPE, and other major cryptocurrencies declined 5%-10%. SOL failed to clear the $162 barrier once again and trimmed most gains.
Earlier this month, there was a recovery wave from the $110 support zone. The price climbed above the $125 and $130 levels. It even cleared the 50% Fib retracement level of the downward move from the $194 swing high to the $109 low.
Solana price daily chart | Source: SOL/USD on TradingView.com
Solana even attempted a close above the 50-day simple moving average (blue). However, the $162 resistance zone proved to be a turning point. It acted as a hurdle and prevented more gains on more than two occasions.
The price is now trading below the 50-day simple moving average (blue) and consolidating near $150. SOL is also trading inside a key contracting triangle with support at $144 on the daily chart.
If there is another increase, the price could face resistance near the $155 level. The first major resistance sits near the $162 level (the recent swing region). It is close to the 61.8% Fib retracement level of the downward move from the $194 swing high to the $109 low.
A successful daily close above the $162 resistance and then a follow-up move above the $165 level could set the tone for another rally. The next major resistance is at $175, above which the bulls might aim for $188. Any more gains might send SOL toward the $200 level.
Solanaâs adaptation continues â Robinhood Wallet recently integrated the Solana network enabling self-custody of SOL tokens to its users.
Robinhood SolanaJust in: Robinhood Wallet has added support for Solana! https://t.co/Qxsu8mrVTE pic.twitter.com/7VumKVvCgT
â Solana (@solana) August 27, 2024
Downside Break In SOL?
Conversely, Solana might fail to clear the $155 resistance and start another decline. Immediate support is near the $144 level and the triangleâs lower trend line.
A downside break and close below the $144 support could spark heavy bearish moves. In the stated case, the price might decline toward the $130 support level. The main uptrend support is now near the $122 level.
Overall, SOL price is consolidating above the $140 zone. To continue higher, the bulls must clear the $162 and $165 resistance levels.
The post Solana (SOL) In Consolidation: What Could Drive The Next Rally? appeared first on CoinChapter.
