Solana (SOL) has been making significant gains above the $35 resistance level against the US Dollar. The price of SOL remains well-supported and could potentially rally further towards the $38 resistance level.
After a notable upward move, Solana has established a solid foothold above the pivotal $30 level. Following this, SOL gained considerable bullish momentum as it formed a strong base above both the $30 and $32 levels. In fact, SOL is currently outperforming leading cryptocurrencies Bitcoin and Ethereum.
Breaking Resistance
Solana experienced a convincing breach above the $35 resistance zone, leading to the formation of a new multi-week high around $36.48. At present, the price is consolidating its gains above the 23.6% Fibonacci retracement level, which was calculated from the swing low of $32.34 to the swing high of $36.48. Additionally, SOL is trading comfortably above the 100 simple moving average (4 hours).
The immediate resistance level for SOL is located around $36.50, followed by a major resistance at approximately $36.80. A successful close above the $36.80 resistance level could potentially trigger a more significant price increase. If SOL continues its upward trajectory, the next key resistance to watch out for is near $38.00, and any further gains could propel the price towards the $40.00 level.
On the downside, initial support is expected around the $34.40 level, with major support residing around the $33.30 level. This level aligns with the bullish trend line on the 4-hour chart of the SOL/USD pair, further reinforced by the 76.4% Fibonacci retracement level from the swing low of $32.34 to the swing high of $36.48. A close below the $33.30 support level may cause the price to decline towards the $32.00 support level.
The 4-hour Moving Average Convergence Divergence (MACD) for SOL/USD is currently gaining momentum in the bullish zone, indicating further upward potential. The Relative Strength Index (RSI) is also above the 50 level, suggesting that buyers are in control for now.
Solana (SOL) has witnessed a remarkable rally, surpassing several resistance levels, and settling above the $35 mark. With strong support and bullish indicators, SOL could continue its upward trajectory towards the $38 resistance level. However, caution is advised, as a failure to break above the immediate resistance could lead to a downside correction. Traders and investors should keep a close eye on the support levels for potential market movements.
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