Solana (SOL) has experienced an impressive rally, surging above the $60 resistance level against the US Dollar. The cryptocurrency has seen a significant price increase of over 50% in just a few days. This surge has positioned SOL to continue its upward momentum, targeting the $75 level.
SOL initiated its major rally by surpassing the crucial $55 resistance level against the US Dollar. Currently, the price is trading above $60 and the 100 simple moving average (4 hours). In addition, there is a prominent bullish trend line forming, providing support near $55 on the 4-hour chart of the SOL/USD pair, sourced from Kraken. These factors contribute to SOL’s bullish momentum, indicating the potential for further upward movement.
In recent days, Solana has outperformed Bitcoin and Ethereum, resulting in a substantial price surge above the $50 level. The bulls are not finished yet, with SOL’s price soaring over 50% in just a few days. Moreover, SOL’s recent rally pushed the price above the $65 level, reaching a high of approximately $67.21 before consolidating gains.
Although SOL’s price is currently consolidating, there are positive signs indicating further upward potential. The price continues to display optimistic indications above the 23.6% Fibonacci retracement level of the upward move from the $51.23 swing low to the $67.21 high. Moreover, SOL is now trading above $60 and the 100 simple moving average (4 hours), reinforcing its bullish sentiment. Additionally, a significant bullish trend line is forming with support near $55.00 on the 4-hour chart of the SOL/USD pair.
Immediate resistance for SOL is around the $67.20 level, with the first major resistance at $68.00. A successful close above the $65.00 resistance could set the pace for a larger price increase. The subsequent key resistance lies near $70.00, and if momentum continues, there is a possibility for the price to reach $75.00.
If SOL fails to overcome the $68.00 resistance, a downside correction may be imminent. Initial support on the downside is expected near the $62.50 level. The first major support is around $57.75 or the 61.8% Fibonacci retracement level of the upward move from the $51.23 swing low to the $67.21 high. Further downward movement could test the trend line. A close below the $55.00 support level may result in a decline towards the $50.00 support in the near term.
Analyzing the technical indicators, the 4-hour MACD (Moving Average Convergence Divergence) for SOL/USD is currently losing momentum in the bullish zone. Meanwhile, the RSI (Relative Strength Index) for SOL/USD remains above the 50 level, indicating a bullish outlook.
Solana has experienced a significant rally, breaking above key resistance levels and outperforming Bitcoin and Ethereum. SOL’s impressive surge of over 50% in just a few days suggests further price appreciation, with potential targets set around $75. However, SOL must overcome resistance levels, with immediate hurdles at $67.20 and $68.00. Failure to do so could lead to a downside correction, finding initial support near $62.50. Technical indicators support a bullish sentiment, but caution should be exercised as the cryptocurrency market remains highly volatile.
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