Solana (SOL) is currently maintaining its gains above the $220 support level. If it manages to break above the $250 resistance, the bulls could regain control.
After surpassing the $200 resistance, Solana continued to climb higher, surpassing the $215 and $220 resistance levels. The bulls successfully pushed the price above the $240 level and the 50-day simple moving average (blue line). Eventually, SOL tested the $265 zone.
However, the price experienced a pullback, similar to Dogecoin and XRP, falling below the $250 and $240 levels. The price even dropped below the 23.6% Fibonacci retracement level of the upward move from the $120 swing low to the $264 high.
Solana then tested the $220 support zone, but remained well above the 50-day simple moving average (blue line). It managed to recover some of its losses and traded above the $240 level. On the daily chart, SOL cleared a short-term bullish flag with resistance at $235.
The current price action is positive and indicates a potential increase. Immediate resistance is seen near the $250 level, with the first major resistance at $265. If the price successfully breaks above the $265 level, it could move towards the next key resistance at $272.
A daily close above the $272 resistance could pave the way for a test of the $300 level. If the price manages to break above the $300 barrier, it could rise towards the $310 level in the coming days.
In other news, Solana recently revealed details of its Onchain Holiday shop, where users can purchase exclusive merchandise from the ecosystem, including Bonk, Wif, Ponke, Wen, Send, Claynosaurz, SMBs, and Backpack.
On the other hand, SOL may face difficulties in surpassing the $250 resistance and could experience another pullback. Immediate support is seen near the $232 level, with the first major support at $220. If the price falls below this level, it may test the 50-day simple moving average (blue line) at $210.
If the price closes daily below the 50-day simple moving average (blue line), it could experience further decline. In such a scenario, Solana could drop towards the $175 support zone. Any additional losses could push SOL towards the $155 support zone in the near future.
Overall, Solana’s price is currently indicating a potential increase above $240. However, for it to challenge the $300 level, SOL must establish a foothold above the $250 and $265 levels.