Key Takeaways:

  • SOL price corrected gains and tested the $220 support zone.

  • It cleared a short-term bullish flag with resistance at $235 on the daily chart.

  • Solana could start a fresh increase rally there is a daily close below the $220 support.

Solana price prediction

Solana (SOL) is holding gains above the $220 support. The bulls could regain control if there is a clear move above the $250 resistance.

Solana Price Signals Uptrend Continuation

After a close above the $200 resistance, Solana climbed above the $215 and $220 resistance levels. The bulls were able to push the price above the $240 level and the 50-day simple moving average (blue). Finally, SOL tested the $265 zone.

A high was formed at $263.98 and the price saw a pullback like Dogecoin and XRP. The price declined below the $250 and $240 levels. There was a move below the 23.6% Fib retracement level of the upward move from the $120 swing low to the $264 high.

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

Solana tested the $220 support zone and remained well above the 50-day simple moving average (blue). It recovered some losses and traded above the $240 level. SOL cleared a short-term bullish flag with resistance at $235 on the daily chart.

The current price action is positive and signals a fresh increase. Immediate resistance sits near the $250 level. The first major resistance sits near the $265 level. A clear move above the $265 level could send SOL toward the next key resistance at $272.

A successful daily close above the $272 resistance might open the doors for a test of the $300 handle. If there is a clear move above the $300 barrier, the price could rise toward the $310 level in the coming days.

Recently, Solana shared details of its Onchain Holiday shop to buy gifts, featuring exclusive merch drops from the ecosystem, including Bonk, Wif, Ponke, Wen, Send, Claynosaurz, SMBs and Backpack.

Your magic internet money has been waiting for this moment.Onchain Holiday is here — it’s time to buy gifts for your loved ones, onchain! pic.twitter.com/fxJK5EvnKs

— Solana (@solana) December 5, 2024

Another Pullback In SOL?

Conversely, SOL might struggle to surpass the $250 resistance and start another pullback. Immediate support is near the $232 level. The first major support sits near the $220 level, below which the price might test the 50-day simple moving average (blue) at $210.

If there is a daily close below the 50-day simple moving average (blue), the price might tumble. In the stated case, Solana could decline toward the $175 support zone. Any more losses could send SOL toward the $155 support zone in the near term.

Overall, Solana price is signaling a fresh increase above $240. However, SOL must settle above the $250 and $265 levels to challenge the $300 handle.

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