Solana started a fresh increase from the $195 zone. SOL price is now recovering higher and might aim for a move above the $205 resistance zone.
- SOL price started a recovery wave after it tested the $195 zone against the US Dollar.
- The price is now trading below $205 and the 100-hourly simple moving average.
- There was a break above a connecting bearish trend line with resistance at $201 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could start a fresh increase if it clears the $205 resistance zone.
Solana Price Eyes Steady Recovery
Solana price extended losses after there was a close below $205, like Bitcoin and Ethereum. SOL traded below the $200 and $195 support levels to enter a short-term bearish zone.
A low was formed at $194 and the price is now attempting a fresh increase. The price surpassed the $198 and $200 resistance levels. There was a move above the 23.6% Fib retracement level of the downward move from the $218 swing high to the $194 low.
Besides, there was a break above a connecting bearish trend line with resistance at $201 on the hourly chart of the SOL/USD pair. Solana is now trading below $205 and the 100-hourly simple moving average.
On the upside, the price is facing resistance near the $202 level. The next major resistance is near the $205 level or the 50% Fib retracement level of the downward move from the $218 swing high to the $194 low. The main resistance could be $209. A successful close above the $209 resistance zone could set the pace for another steady increase. The next key resistance is $218. Any more gains might send the price toward the $225 level.
Another Decline In SOL?
If SOL fails to rise above the $205 resistance, it could continue to move down. Initial support on the downside is near the $200 zone. The first major support is near the $195 level.
A break below the $195 level might send the price toward the $188 support zone. If there is a close below the $188 support, the price could decline toward the $184 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining pace in the bullish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major Support Levels – $200 and $195.
Major Resistance Levels – $205 and $209.
Credit: Source link
