Solana is currently experiencing a bullish momentum with the price surpassing $108 and showing positive signs of further growth. There has been a recent increase in SOL price from the $98.50 support level against the US Dollar. The price is now trading above $108 and the 100 simple moving average (4 hours). Additionally, a major bearish trend line with resistance at $108.80 on the 4-hour chart of the SOL/USD pair was broken, indicating a potential for continued rally if the $115 and $118 resistance levels are cleared.
Formation of a Strong Support Base
Solana’s price formed a strong support base above the $98.50 zone, leading to a fresh increase in price. This increase was highlighted by a significant rise above the $102 and $105 levels, resulting in a nearly 10% surge. Moving above the $108 level, Solana follows the footsteps of Bitcoin and Ethereum in its positive price movement. The bulls successfully pushed the price above the 50% Fib retracement level, signaling a bullish trend. Solana is currently trading above $110 and the 100 simple moving average (4 hours), with immediate resistance at the $111 level. The next major resistance lies near the $114 level or the 76.4% Fib retracement level.
With a successful close above the $114 resistance, Solana could pave the way for another major increase, potentially reaching the $118 level. Further gains might even push the price towards the $125 mark. However, failing to rally above the $114 resistance could initiate a downside correction. In such a scenario, the initial support at the $108.50 level or the 100 simple moving average (4 hours) would come into play. The first major support is anticipated near the $105.00 level, with a potential downside to the $98.50 support level if the price continues to decline. A close below $98.50 could lead the price towards the $92 support level in the short term.
Looking at the technical indicators, the 4-Hour MACD for SOL/USD is gaining momentum in the bullish zone, indicating a positive outlook for Solana’s price movement. The 4-Hour RSI (Relative Strength Index) for SOL/USD is currently above the 50 level, further supporting the bullish momentum. Major support levels are identified at $108.50 and $105.00, while major resistance levels include $114, $118, and $125.
The recent price movement of Solana has shown signs of bullish momentum with the potential for further increase if key resistance levels are surpassed. However, caution is advised as a failure to rally above certain resistance points could lead to a downside correction. It is recommended to conduct thorough research and analysis before making any investment decisions, as investing always carries inherent risks.
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