The price of Solana (SOL) has witnessed a remarkable rally in recent days, surging over 50% and outperforming both Bitcoin and Ethereum. As SOL surpasses the $60 mark, investors are eagerly anticipating if the price will continue to rise, with $75 being the next significant level to watch.
Solana’s upward movement began with a breakthrough above the $55 resistance against the US Dollar, which opened doors for a major rally. Currently, SOL is trading above $60 and the 100 simple moving average (4 hours), indicating a strong bullish sentiment in the market. Moreover, a significant bullish trend line is forming with support near $55.00 on the 4-hour chart, as per data from Kraken. This suggests that the ongoing rally may have room for further growth.
After reaching a high near $67.21, the price of SOL is now consolidating its recent gains. Encouragingly, the price displays positive signs and remains above the 23.6% Fibonacci retracement level of the upward move from the $51.23 swing low to the $67.21 high. Furthermore, SOL’s current trading above $60 and the 100 simple moving average (4 hours) reinforces the prevailing bullish trend.
Although SOL faces immediate resistance near the $67.20 level, the first major resistance lies at $68.00. A successful close above the $65.00 resistance may pave the way for a more substantial increase. Traders and investors will closely monitor SOL’s performance as it approaches the crucial $70.00 level. If the bullish momentum persists, the price could potentially climb towards the significant psychological level of $75.00.
In the event that SOL fails to overcome the $68.00 resistance, a downside correction could ensue. The initial support on the downside is near the $62.50 level, followed by the first major support zone near $57.75 or the 61.8% Fibonacci retracement level. If the price breaks below this support, it could test the aforementioned bullish trend line. A close below the $55.00 support might trigger a decline towards the $50.00 support in the near term.
Analyzing the technical indicators, it appears that the 4-hour MACD (Moving Average Convergence Divergence) for SOL/USD is losing pace in the bullish zone. However, the 4-hour RSI (Relative Strength Index) is currently above the 50 level, suggesting a positive sentiment for the SOL market.
Solana’s recent price rally has been exceptional, surpassing the $60 resistance and capturing traders’ attention. With SOL trading above the 100 simple moving average (4 hours) and a major bullish trend line forming, the cryptocurrency is well-positioned for further gains. As the price approaches key resistance levels, including $68.00, $70.00, and potentially $75.00, market participants should closely monitor SOL’s behavior for potential trading opportunities. However, a downside correction cannot be ruled out, with support levels situated at $62.50, $57.75, and $55.00, respectively. Ultimately, market sentiment and external factors will play a critical role in shaping the trajectory of SOL’s price in the coming days and weeks.