Wednesday, December 25, 2024
Home > Analysis > SOL Price Restarts Rally – Why Solana Could Surge Over 10%

SOL Price Restarts Rally – Why Solana Could Surge Over 10%

Solana is gaining bullish momentum above $108. SOL price is showing positive signs, and it could even surpass the $118 resistance in the near term.

  • SOL price started a fresh increase from the $98.50 support against the US Dollar.
  • The price is now trading above $108 and the 100 simple moving average (4 hours).
  • There was a break above a major bearish trend line with resistance at $108.80 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
  • The pair could continue to rally if it clears the $115 and $118 resistance levels.

Solana Price Starts Fresh Increase

Solana price formed a base above the $98.50 support zone and recently started a fresh increase. There was a decent increase above the $102 and $105 levels.

The price is up nearly 10% and there was a move above the $108 level, like Bitcoin and Ethereum. There was a break above a major bearish trend line with resistance at $108.80 on the 4-hour chart of the SOL/USD pair. The bulls pushed the price above the 50% Fib retracement level of the downward move from the $118.70 swing high to the $98.54 low.

Solana is now trading above $110 and the 100 simple moving average (4 hours). Immediate resistance is near the $111 level. The next major resistance is near the $114 level or the 76.4% Fib retracement level of the downward move from the $118.70 swing high to the $98.54 low.

Source: SOLUSD on TradingView.com

A successful close above the $114 resistance could set the pace for another major increase. The next key resistance is near $118. Any more gains might send the price toward the $125 level.

Are Dips Limited in SOL?

If SOL fails to rally above the $114 resistance, it could start a downside correction. Initial support on the downside is near the $108.50 level or the 100 simple moving average (4 hours).

The first major support is near the $105.00 level, below which the price could test $98.50. If there is a close below the $98.50 support, the price could decline toward the $92 support in the near term.

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 – $108.50, and $105.00.

Major Resistance Levels – $114, $118, and $125.

Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Source