Solana is recovering above the $16 resistance against the US dollar. The SOL price could rise steadily towards the USD 20 resistance if Bitcoin climbs above USD 30,800.
- SOL price is showing positive signs above the USD 16 level against the US dollar.
- The price is now trading above $15 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support near USD 16.05 on the SOL/USD pair’s 4-hour chart (data source from Kraken).
- The pair could continue to rise unless a close comes below $14.40.
Solana price recovers 10%
In the past few days, the price of Solana started to rise again from the $13.00 support zone. Recently, Bitcoin and Ethereum saw steady increases leading to positive moves in Solana and Cardano.
The bulls were able to push SOL above the $14.40 resistance zone. There was a close above the $16.00 resistance. However, the price encountered resistance near $17.75, and the key’s 50% Fib retracement level fell from the $22.31 swing high to the $13.00 low.
SOL is now trading above $15 and the 100 simple moving average (4 hours). A major bullish trendline is also forming with support near USD 16.05 on the 4-hour chart of the SOL/USD pair.
On the upside, immediate resistance is near the $17.75 level. A clear move above the $17.75 resistance could push the price towards the $20 resistance. It is close to the 76.4% Fib retracement level of the main drop from the $22.31 swing high to the $13.00 low.
Source: SOLUSD at TradingView.com
A close above the $20 level could again send the price to the $21.20 resistance zone. More gains could send the price towards the $22.40 level.
New decline in SOL?
If SOL fails to clear the $17.75 resistance, it could start a fresh decline. The first support on the downside is near the $16.00 level and trendline.
The first major support is near the $14.40 level, below which the bears could gain strength. In the said case, the price might drop towards $13.00 support. The next major support is near the $12.20 level.
Technical indicators
4am MACD – The MACD for SOL/USD is losing pace in the bullish zone.
4 hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major Support Levels – $16.00 and $14.40.
Main resistance levels – $17.75, $20.00 and $21.20.