Solana (SOL) has experienced a remarkable rally in recent days, surging over 50% and surpassing the $60 resistance level against the US Dollar. This impressive price action suggests that SOL may continue its upward trajectory and potentially reach the $75 level.
After successfully breaching the $55 resistance level, SOL began its major rally. The current price is now trading above both $60 and the 100 simple moving average (4 hours), indicating a strong bullish sentiment in the market. Additionally, a significant bullish trend line with support near $55.00 has formed on the 4-hour chart of the SOL/USD pair according to data from Kraken.
Solana’s recent price surge has outperformed both Bitcoin and Ethereum, showcasing its strength and potential in the market. This bullish momentum has propelled SOL’s price upwards, surpassing the $65 level and establishing a high near $67.21. While the price is currently consolidating its gains, it is displaying positive signs above the 23.6% Fibonacci retracement level of the upward move from the $51.23 swing low to the $67.21 high.
SOL faces immediate resistance around the $67.20 level, with the first major obstacle lying near $68.00. A successful close above the $65.00 resistance level could set the stage for a more substantial increase. The next significant resistance to consider is near $70.00, and any further gains might propel the price towards the $75.00 level.
However, if SOL fails to recover above the $68.00 resistance level, it could undergo a downside correction. The initial support on the downside can be found near the $62.50 level. The first major support is near $57.75 or the 61.8% Fibonacci retracement level of the upward move from the $51.23 swing low to the $67.21 high. A further decline could test the aforementioned bullish trend line, and a close below the $55.00 support level may result in a decline towards the $50.00 support level in the near term.
Checking the 4-hour chart, the MACD indicator for SOL/USD is showing signs of losing pace in the bullish zone. Additionally, the Relative Strength Index (RSI) is currently above the 50 level, which suggests a positive market sentiment.
Solana’s recent rally above key resistance levels has demonstrated its strength and potential for further upside. The bullish trend line and the price’s ability to trade above $60 and the 100 simple moving average (4 hours) further support this notion. However, caution should be exercised as the market faces several resistance levels, and a close below key support levels could trigger a downside correction. Keeping an eye on the technical indicators, such as the MACD and RSI, will provide further insights into the potential direction of SOL’s price in the coming days.
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