Monday, January 30, 2023
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Solana Rally Could Gather Pace above $30

Solana is surging above $20 against the US Dollar. SOL price could extend its rally above the $26 and $30 resistance levels in the near term.

  • Sol price started a fresh increase above the $20 and $22 levels against the US Dollar.
  • The price is now trading above $22 and the 100 simple moving average (4-hours).
  • There is a major bullish trend line forming with support near $23.05 on the 4-hours chart of the SOL/USD pair (data source from Kraken).
  • The pair could rise further if it stays above the $22.00 and $20.00 support levels.

Solana Price Rallies Over 10%

This week, solana price formed a base and started a steady increase above the $20 level. There was a strong increase above the $22 resistance zone, similar to bitcoin and ethereum.

The bulls even managed to pump the price above the $25 resistance. It traded to a new yearly high at $26.54 before there was a minor downside correction. There was a decline below the $24 level. The price declined below the 50% Fib retracement level of the upward wave from the $20.20 swing low to $26.54 high.

Sol price is now trading above $22 and the 100 simple moving average (4-hours). There is also a major bullish trend line forming with support near $23.05 on the 4-hours chart of the SOL/USD pair.

The pair is now trading comfortably above the 61.8% Fib retracement level of the upward wave from the $20.20 swing low to $26.54 high. The price is now rising and up over 8%. On the upside, an immediate resistance is near the $25 level.

Source: SOLUSD on TradingView.com

The first major resistance is near the $26.50 level. The next major resistance is near the $28 zone, above which the price might rise towards the $30 barrier. Any more gains might send the price towards the $35 level.

Dips Attractive in SOL?

If SOL fails to clear the $26.50 resistance, it could start a downside correction. An initial support on the downside is near the $24 level.

The first major support is near the $23.00 level and the trend line. The next major support is near the $21.70 level. If there is a downside break below the $21.70 support, the price might test the next key support at $20.

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 – $24, $23 and $20.

Major Resistance Levels – $25, $26.50 and $30.

Source