2 October 2023
Solana is surging above the $23.50 resistance against the US Dollar. SOL price could accelerate further higher if it clears the $25.00 resistance zone.
SOL price is up over 15% and it is showing signs of bullish continuation against the US Dollar.
The price is now trading below $23.00 and the 100 simple moving average (4 hours).
There is a key bullish trend line forming with support near $23.10 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
The pair could rise further higher if it clears the $25 resistance zone.
Solana Price Starts Fresh Rally
In the past few days, Solana’s price formed a strong support base above the $18.80 level. SOL started a strong increase after it settled above the $22 resistance zone.
There was a steady increase above the $23.20 resistance, outpacing Bitcoin and Ethereum. It is up over 15% and there was a test of the $24.50 resistance. A high is formed near $24.47 and the price is now consolidating gains. SOL is well above the 23.6% Fib retracement level of the upward move from the $18.75 swing low to the $24.47 high.
It is also trading below $23.00 and the 100 simple moving average (4 hours). Besides, there is a key bullish trend line forming with support near $23.10 on the 4-hour chart of the SOL/USD pair.
Source: SOLUSD on TradingView.com
On the upside, immediate resistance is near the $24.50 level. The first major resistance is near the $25.00 level. A clear move above the $25 resistance might send the price toward the $27.20 resistance. The next key resistance is near $28.80. Any more gains might send the price toward the $30 level.
Downside Correction in SOL?
If SOL fails to settle above $24.50 and $25.00, it could start a downside correction. Initial support on the downside is near the $23.20 level and the trend line.
The first major support is near the $21.50 level or the 50% Fib retracement level of the upward move from the $18.75 swing low to the $24.47 high. If there is a close below the $21.50 support, the price could decline toward the $20.50 support. In the stated case, there is a risk of more downsides toward the $20.00 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 – $23.20, and $21.50.
Major Resistance Levels – $24.50, $25.00, and $27.20.