Solana (SOL) is indicating a renewed upward trend above $150 and the 50-day simple moving average, with the potential for a 20% jump if it surpasses $162.
Over the past few days, Solana’s price has seen a decent increase above the $140 resistance zone, driven by bullish movements in the overall crypto market, including Bitcoin, Ethereum, XRP, SOL, and other major altcoins. During this increase, the price broke through a significant bearish trend line with resistance at $146.50 on the daily chart.
There was a successful close above the $150 resistance zone and the 50-day simple moving average. Additionally, the price moved above the 50% Fibonacci retracement level of the previous downward move from the $188.55 swing high to the $121.22 low.
Solana tested the $162 resistance level, but encountered resistance from bears near the 61.8% Fibonacci retracement level of the previous downward move. However, the current price action is positive, suggesting that the bulls may aim for further upside. The immediate resistance is around the $162 level, followed by a major resistance at $172. A daily close above $162, followed by a move above $172, could set the stage for another rally.
If the bulls continue to push the price higher, the next major resistance levels to watch are $188 and potentially $192. Further gains could even lead SOL towards the $200 level.
A recent semi-annual report by Everstake highlighted some key points about Solana, including its status as a global network with over 5,400 nodes distributed across 43 countries and 237 cities, achieving 100% uptime, and demonstrating a high Stake-weighted Quality of Service (QoS).
However, there is a possibility that Solana may fail to break the $162 resistance and initiate a downside correction. The immediate support levels to watch are around $150 and the 50-day simple moving average. The first major support is seen near $142 and the recent breakout zone. A break and close below $142 could result in significant bearish movements, potentially leading the price towards the $130 support level. The main uptrend support remains around $120.
Overall, the price of SOL is currently eyeing another upward breakout above $162. If the bulls are successful in their efforts, SOL could experience a 20% rally and test the $188 resistance level.
