Solana Price Prepares For Fresh Gains
Solana (SOL) started a fresh increase above the $160 resistance. The price is now consolidating gains and might start a fresh rally above $195.
In the last technical analysis, we saw a decent increase in Solana from the $132 support zone. A base was formed, and the price was able to surpass the $150 resistance. The recent bullish moves in Bitcoin have also opened the doors to more gains.
The price cleared the $170 resistance zone before the bears appeared. The bulls seem to be struggling near the $185 and $188 levels, but the price is now well above the 23.6% Fib retracement level of the downward move from the $295 swing high to the $95 low.
Solana is now consolidating gains above the $165 level and the 50-day simple moving average (blue). There is also a key rising channel forming with support at $175 on the daily chart.
If the bulls remain active above the channel’s trend line, the price could start a fresh increase. Immediate resistance is near the $180 level. A convincing move above the $180 resistance could start a fresh increase.
The first major resistance sits near the $195 level. It is close to the 50% Fib retracement level of the downward move from the $295 swing high to the $95 low. The next key resistance could be $220. A clear move above the $220 level could send the price toward the next key resistance at $248. A successful daily close above the $248 resistance might open the doors for a move toward the $265 level. Any more gains might send the price toward the $280 level in the medium term.
Downside Break In SOL?
If Solana fails to surpass the $180 resistance, there could be another decline. Immediate support is near the $175 level and the channel’s lower trend line. The first major support sits near the $165 level.
If there is a close below the $165 support, the price might dive and test the $155 support and the 50-day simple moving average (blue). The next key support could be the $132 level. Any more losses could send SOL toward the $120 support zone in the near term.
Overall, Solana price is consolidating above the $165 support level. To start a fresh increase, SOL price must settle above the $180 resistance level. If not, the price could start a downside correction toward the 50-day simple moving average (blue).