Solana initiated a lower correction below the $230 area. SOL price is now recovering losses and facing barriers near the $220 level.
- The price of SOL started a new high after testing the $204 area against the US Dollar.
- The price is now trading below $230 and the 100 hourly simple moving average.
- There is an important bearish line running through the $220 resistance on the SOL/USD hourly chart (data source from Kraken).
- The pair could start a new rally if the bulls clear the $220 area.
Solana Price Eyes Upside Break
Solana price formed a support base and started a new rise from the $204 level like Bitcoin and Ethereum. There was a decent move above the $210 and $212 resistance levels.
There was a move above the 23.6% Fib retracement level to the downside from the $243 swing high to $203 low. However, the price is now facing several obstacles near $220. Solana is now trading above $218 and the 100 hourly simple moving average.
On the other hand, the price is facing resistance near the $220 level. There is also a major bearish line that is building resistance at $220 on the SOL/USD hourly chart.
The next major resistance is near the $224 level or the 50% Fib retracement level of the downside from the $243 swing high to the $203 low. The main resistance would be $228. A successful close above the $228 resistance level could set the pace for further upside. The next key resistance is $235. Any further gains could send the price to the $250 level.
Another Refusal to SOL?
If SOL fails to rise above the $220 resistance, it could start another decline. The first support on the downside is near the $212 level. The first major support is near the $205 level.
A break below the $205 level would send the price to the $200 area. If there is a close below the $200 support, the price could drop to the $188 support in the near term.
Technical References
Hourly MACD – MACD for SOL/USD is trending in bullish territory.
Hourly RSI (Relative Strength Index) – RSI for SOL/USD is above the 50 level.
Major Support Levels – $212 and $205.
Major Resistance Levels – $220 and $228.
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