Solana (SOL) Bulls Stay in Control: Rally Far From Over?

Solana started a fresh increase above the $240 zone. SOL price is consolidating gains and might aim for an upside break above the $255 resistance.

• SOL price started a fresh increase after it settled above the $220 level against the US Dollar.
• The price is now trading below $255 and the 100-hourly simple moving average.
• There is a short-term bearish trend line forming with resistance at $252 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The pair could start a fresh increase if the bulls clear the $255 zone.

Solana Price Eyes More Upsides

Solana price formed a support base and started a fresh increase above the $232 level beating Bitcoin and Ethereum . There was a strong move above the $245 and $250 resistance levels.

The price even cleared the $260 level. A high was formed at $2648 and the price is now consolidating gains. There was a move below the $260 and $255 levels. The price dipped below the 50% Fib retracement level of the upward move from the $230 swing low to the $264 high.

However, the bulls are active near the $242 support and the 61.8% Fib retracement level of the upward move from the $230 swing low to the $264 high. Solana is now trading below $255 and the 100-hourly simple moving average.

On the upside, the price is facing resistance near the $252 level. There is also a short-term bearish trend line forming with resistance at $252 on the hourly chart of the SOL/USD pair.

Source: SOLUSD on TradingView.com

The next major resistance is near the $255 level. The main resistance could be $265. A successful close above the $265 resistance level could set the pace for another steady increase. The next key resistance is $275. Any more gains might send the price toward the $282 level.

Are Dips Limited in SOL?

If SOL fails to rise above the $255 resistance, it could start a downside correction. Initial support on the downside is near the $246 level. The first major support is near the $242 level.

A break below the $242 level might send the price toward the $238 zone. If there is a close below the $238 support, the price could decline toward the $230 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is gaining pace in the bullish zone.

Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.

Major Support Levels – $246 and $242.

Major Resistance Levels – $255 and $260.