Solana is rising above the resistance at $23.50 against the US dollar. SOL price could rise further if it crosses the USD 25.00 resistance zone.
- The SOL price is up over 15% and is showing signs of bullish continuation against the US dollar.
- The price is now trading below $23.00 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support near $23.10 on the 4-hour chart of the SOL/USD pair (Kraken data source).
- The pair could rise further if it crosses the $25 resistance zone.
Solana Price starts new rally
In recent days, Solana’s price formed a strong support base above the USD 18.80 level. SOL started a strong rise after settling above the USD 22 resistance zone.
There was a steady rise above the resistance at $23.20, outperforming Bitcoin and Ethereum. It is up over 15% and there was a test of the $24.50 resistance. A high is formed near $24.47 and the price is now consolidating gains. SOL is well above the 23.6% Fib retracement level of the upward move from the $18.75 swing low to the $24.47 high.
It is also trading below $23.00 and the 100 simple moving average (4 hours). Moreover, a major bullish trendline is forming with support around $23.10 on the 4-hour chart of the SOL/USD pair.
Source: SOLUSD on TradingView.com
On the upside, immediate resistance is around the $24.50 level. The first major resistance is around the $25.00 level. A clear move above the USD 25 resistance could send the price towards the USD 27.20 resistance. The next major resistance is near $28.80. Any further gains could send the price towards the USD 30 level.
Downward correction in SOL?
If SOL fails to settle above USD 24.50 and USD 25.00, a downward correction could occur. The initial downside support is near the $23.20 level and the trendline.
The first major support is near the $21.50 level or the 50% Fib retracement level of the upward move from the $18.75 swing low to the $24.47 high. If there is a close below the USD 21.50 support, the price could fall towards the USD 20.50 support. In the mentioned case, there is a risk that more downsides will occur towards the $20.00 support in the short 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 – USD 23.20 and USD 21.50.
Major resistance levels – $24.50, $25.00 and $27.20.
