Solana is gaining bullish momentum above $108. SOL price is showing positive signs and could even surpass the USD 118 resistance in the near term.
- SOL price started to rise again after the support at $98.50 against the US dollar.
- The price is now trading above $108 and the 100 simple moving average (4 hours).
- There was a break above a major bearish trendline with resistance at $108.80 on the 4-hour chart of the SOL/USD pair (Kraken data source).
- The pair could continue to rise if it overcomes the USD 115 and USD 118 resistance levels.
Solana price starts new increase
Solana price formed a base above the USD 98.50 support zone and recently started a new increase. There was a decent increase above the USD 102 and USD 105 levels.
The price is up almost 10% and there was a move above the USD 108 level like Bitcoin and Ethereum. There was a break above a major bearish trendline with resistance at $108.80 on the 4-hour chart of the SOL/USD pair. The bulls pushed the price above the 50% Fib retracement level of the downward move from the $118.70 swing high to the $98.54 low.
Solana is now trading above $110 and the 100 simple moving average (4 hours). The immediate resistance is near the $111 level. The next major resistance is near the $114 level or the 76.4% Fib retracement level of the downward move from the $118.70 swing high to the $98.54 low.
Source: SOLUSD on TradingView.com
A successful close above the $114 resistance could set the pace for another big move higher. The next major resistance is near USD 118. Any further gains could send the price towards the USD 125 level.
Are the dips limited in SOL?
If SOL fails to break above the USD 114 resistance, a downside correction could occur. The initial downside support is near the $108.50 level or the 100 simple moving average (4 hours).
The first major support is near the USD 105.00 level, below which the price could test USD 98.50. If there is a close below the USD 98.50 support, the price could fall towards the USD 92 support in the near term.
Technical indicators
4-hour MACD – The MACD for SOL/USD is gaining speed in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major support levels – $108.50 and $105.00.
Major resistance levels – $114, $118 and $125.
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