Solana (SOL) has recently tested the critical support level of $135, following a correction from its earlier highs. Currently, the price is on the rise and may gain bullish momentum if it successfully clears the $144 resistance mark.
After climbing above $146 and $148, Solana faced selling pressure, peaking at $152 before experiencing a fresh decline that mirrored the movements of Bitcoin and Ethereum. The SOL price dropped below significant support levels at $145 and $140, forming a low at $135.39. However, the price has begun to recover, making a decent move above the $140 threshold and crossing the 23.6% Fibonacci retracement level of the downward move from the $152 swing high.
Recent technical analysis shows that Solana has broken above a key bearish trend line, with resistance noted at $139 on the hourly chart for the SOL/USD pair. Currently, Solana is trading below $145 and the 100-hourly simple moving average, indicating that it faces challenges in regaining momentum.
On the upside, the immediate resistance is at the $144 level, which aligns closely with the 50% Fibonacci retracement level from the recent price drop. If Solana can overcome this resistance, the next major hurdle lies at $146, with a critical resistance point at $150.A successful close above both the $150 and $152 resistance levels could trigger a steady increase, with the next significant resistance positioned around $162. If bullish momentum continues, the price may eventually target the $175 level.
Conversely, if Solana fails to breach the $144 resistance, it could initiate another decline. Initial support on the downside is near the $138 level, with the first major support lying around $134. A break below the $135 mark could lead the price toward the $132 zone. Should the price close below $132, a further decline toward the $120 support level could be expected in the near term.
As Solana attempts to recover from its recent lows, traders should closely monitor key resistance and support levels. A breakthrough above $144 could set the stage for a bullish rally, while a failure to do so may result in a downward correction. With the cryptocurrency market’s inherent volatility, keeping an eye on these technical indicators will be crucial for potential investors and traders looking to capitalize on Solana's price movements.
October 2024, Cryptoniteuae