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Solana (SOL) has started a fresh increase from the $130 support level. The price is currently up nearly 10%, but it’s imperative to acknowledge that it may need to reset before a potential reversal.
In our previous analysis, Solana’s price action saw a decline below the $172 and $165 levels, leading to a loss of most gains and settlement below the $160 pivot level. This resulted in a clear move below the 50% Fib retracement level of the upward move from the $95 swing low to the $188 high.
The price has now trimmed most gains and settled below the $160 pivot level. The bears are still not far behind, as there was a spike below the $130 support level and the 61.8% Fib retracement level of the upward move from the $95 swing low to the $188 high. The bulls have appeared near the $125 level.
SOL tested the declining channel (as discussed in the previous analysis) or possibly a bullish flag pattern on the daily chart.
The cryptocurrency is now attempting to mount a fresh increase from the $125 support zone, similar to Bitcoin and Ethereum after Trump announced a ceasefire. However, the bulls still have numerous hurdles ahead of them as the price remains below the 50-day simple moving average (blue).
Immediate resistance lies near the $156 level. The first major hurdle is nearby at $155. A convincing move above this resistance could initiate a fresh increase.
The next key resistance could be $160 and the 50-day simple moving average (blue). If Solana’s price closes above the $155 and $160 resistance levels, it may trigger a medium-term uptrend. In such an event, the price would likely rise to revisit the $180 resistance level. Any further gains might propel the price toward the $200 mark in the near term.
On the flip side, if Solana remains below $155, there is a possibility of another decline unfolding. Immediate support lies nearby at $132. The first major support sits near the $125 level. If there is a close below this support, the price may dive and test the $118 support since it coincides with the 76.4% Fib retracement level of the upward move from the $95 swing low to the $188 high.
Source: coinchapter.com
