Solana is slowly moving higher above the $20 resistance against the US Dollar. SOL price could rally if there is a clear move above the $22.80 resistance.
- Sol price found support near $16 and started a fresh increase against the US Dollar.
- The price is now trading above $20 and the 100 simple moving average (4-hours).
- There was a break above a major bearish trend line with resistance near $18.60 on the 4-hours chart of the SOL/USD pair (data source from Kraken).
- The pair could rise further if it clears the $21.60 and $22.80 resistance levels.
Solana Price Reclaims $20
This past week, solana price found support near the $16 zone. The price formed a base and started a decent increase above the $18 resistance, similar to bitcoin and ethereum.
There was a steady increase above the $18 level. Besides, there was a break above a major bearish trend line with resistance near $18.60 on the 4-hours chart of the SOL/USD pair. The pair is now trading above $20 and the 100 simple moving average (4-hours).
On the upside, an immediate resistance is near the $21.55 level. It is near the 50% Fib retracement level of the downward move from the $27.09 swing high to $16.00 low.
Source: SOLUSD on TradingView.com
The next major resistance is near the $22.80 level. It is near the 61.8% Fib retracement level of the downward move from the $27.09 swing high to $16.00 low, above which the price could gain bullish momentum and rise towards the $24 resistance. Any more gains might send the price towards the $25 level.
Dips Limited in SOL?
If SOL fails to clear the $22.80 resistance, it could start a downside correction. An initial support on the downside is near the $20.50 level and the 100 simple moving average (4-hours).
The first major support is near the $19.80 level. The next major support is near the $18.80 level. If there is a downside break below the $18.80 support, the price might test the next key support at $18.00. The main support now sits near the $16.00 zone.
Technical Indicators
4-Hours MACD – The MACD for SOL/USD is gaining pace in the bullish zone.
4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major Support Levels – $20.50, $19.80 and $18.80.
Major Resistance Levels – $21.55, $22.80 and $25.
