Solana (SOL) is indicating a new upward trend above $150 and the 50-day simple moving average, potentially resulting in a 20% surge if it surpasses $162.
Over the past few days, Solana’s price has experienced a significant increase above the $140 resistance zone. This positive movement is reflective of the overall bullish sentiment in the crypto market, with Bitcoin, Ethereum, XRP, SOL, and other major altcoins also experiencing gains. During this upward trend, the price managed to break through a key bearish trend line with resistance at $146.50 on the daily chart.
Furthermore, there was a successful close above the $150 resistance zone and the 50-day simple moving average. Additionally, the price surpassed the 50% Fibonacci retracement level of the previous downward move from the $188.55 swing high to the $121.22 low.
Solana recently tested the $162 resistance level, where the bears became active near the 61.8% Fibonacci retracement level of the previous downward move. However, the current price action suggests a positive sentiment, indicating that the bulls may aim for further upside. The immediate resistance is situated near the $162 level, with the first major resistance at $172. If the daily close manages to surpass the $162 resistance and there is a subsequent move above the $172 level, it could set the stage for another rally. The next significant resistance level is at $188, and a successful breakthrough could propel SOL towards the $192 mark. Further gains may even push the price towards $200.
Recently, Everstake released the Solana semi-annual report, which highlights several key takeaways. These include Solana’s status as a global network with over 5,400 nodes spread across 43 countries and 237 cities, boasting 100% uptime and a Stake-weighted Quality of Service (QoS).
However, there is also a possibility that Solana may fail to break the $162 resistance level and initiate a downside correction. In this scenario, the immediate support exists near the $150 level and the 50-day simple moving average. The first major support level is around $142, which coincides with the recent breakout zone. If the price breaks and closes below this support level, it could trigger significant bearish movements, potentially leading to a decline towards the $130 support level. Nevertheless, the main uptrend support remains near the $120 level.
In conclusion, the price of SOL is currently looking towards another breakout above $162. If the bulls are successful, this could result in a 20% rally and a test of the $188 resistance level.