Solana (SOL) has experienced a significant recovery, rising by 20% from the $120 support zone. However, caution is advised as the price approaches the crucial obstacle at $155.
After a period of decline, the Solana price found strong support around $120. The bulls stepped in and defended the key support level. A low was established at $122.75, and the price began a promising recovery.
The recent filing of the first Solana exchange-traded fund (ETF) in the US by VanEck has generated a bullish response, propelling the SOL price above the resistance levels at $135 and $138. Moreover, the price surpassed the 23.6% Fibonacci retracement level of the downward movement from the swing high of $188.55 to the low of $122.75.
The Solana ecosystem continues to expand, with the introduction of blockchain links, also known as blinks. These blinks enable users to make payments, conduct swaps, mint tokens, donate, and vote using Solana.
Solana has outperformed Bitcoin and Ethereum, recording a 20% increase in just a few days and even breaking the $145 mark. Nevertheless, caution is warranted as the price approaches the resistance zone at $155 and the 50-day simple moving average (blue). A significant bearish trend line is forming on the daily chart, with resistance at $155.00.
This trend line coincides with the 50% Fibonacci retracement level of the downward movement from the swing high of $188.55 to the low of $122.75. A successful daily close above the trend line resistance and the 50-day simple moving average (blue) could pave the way for a steady upward surge.
The next major resistance level is at $172, and if surpassed, the bulls may set their sights on $188. A daily close above the $188 resistance could trigger another rally in SOL towards the $200 level.
On the other hand, Solana may struggle to break through the $155 resistance and experience a downward reaction. Immediate support is found around the $142 level, followed by the first major support at $138 and the recent breakout zone. The trend line at $135 represents another crucial support level.
If the bulls fail to defend $135, the price could decline towards the $122 support. The main support for a breakdown lies around the $120 zone. Further losses might push the price towards the $100 level.
In summary, Solana is attempting to initiate a fresh upward movement above the $145 level. However, it must surpass the $155 hurdle to continue its ascent in the coming days.