The price of SOL, the cryptocurrency powering the Solana blockchain, has shown promising signs above $19.50 against the US Dollar. With SOL currently trading above $20 and the 100 simple moving average, a major bullish trend line is forming, indicating the potential for further upward movement.
The price of SOL, the native cryptocurrency of the Solana blockchain, is displaying positive indicators above the $19.50 mark against the US Dollar. Currently trading above $20 and the 100 simple moving average on the 4-hour chart, SOL/USD shows a major bullish trend line forming with support near $19.70, as observed from data provided by Kraken.
In recent days, Solana’s price initiated a fresh surge from the $15.65 support zone, following the footsteps of Bitcoin and Ethereum. The bulls gained strength, propelling SOL above the $18 resistance level. The price surpassed $20, reaching a high near $20.95, before entering a consolidation phase. During this phase, the price was tested against the 23.6% Fibonacci retracement level, calculated from the upward movement between the $15.64 swing low and the $20.95 high.
SOL maintains its position above $20 and the 100 simple moving average on the 4-hour chart. Furthermore, a significant bullish trend line is forming with support close to $19.70, reinforcing the positive sentiment for SOL/USD traders.
Looking ahead, immediate resistance is anticipated near the $20.50 level, followed by a more significant obstacle near $21. A successful breach above the $21 resistance could propel the price toward the $22 resistance, opening up the potential for further gains. However, failure to clear the $20.50 resistance might trigger a downward correction. Initial support on the downside can be found near $19.70, aligned with the trend line.
If a close below the $18.40 support level occurs, SOL may experience a sharp decline. This level represents the 50% Fibonacci retracement level of the upward movement from the $15.64 swing low to the $20.95 high. The price could drop toward the $16.80 support in such a scenario. The subsequent major support level lies near $15.65.
Technical indicators also support a bullish outlook. The 4-hour MACD for SOL/USD is gaining momentum within the bullish zone, while the 4-hour RSI (Relative Strength Index) remains above the 50 level, further strengthening the positive sentiment.
With SOL’s price trading above key levels and displaying a bullish trend line, the cryptocurrency can potentially target the $22 resistance level, bolstered by favorable technical indicators.