Key Takeaways:
Solana (SOL) is maintaining its gains above the $220 support level. If the price is able to break above the $250 resistance level, the bulls could regain control.
Solana Price Signals Uptrend Continuation
After surpassing the $200 resistance level, Solana continued to rise above the $215 and $220 resistance levels. The bulls successfully pushed the price above the $240 level and the 50-day simple moving average (blue line). Eventually, SOL tested the $265 zone.
The price reached a high of $263.98 before experiencing a pullback, similar to Dogecoin and XRP. It dropped below the $250 and $240 levels and even went below the 23.6% Fibonacci retracement level of the upward movement from the $120 swing low to the $264 high.
Solana tested the $220 support level and remained well above the 50-day simple moving average (blue line). It recovered some of its losses and traded above the $240 level. On the daily chart, SOL cleared a short-term bullish flag with resistance at $235.
The current price action is positive and indicates a potential increase. The immediate resistance is around the $250 level, while the first major resistance is near the $265 level. If the price is able to break above the $265 level, SOL could move towards the next key resistance at $272.
A successful daily close above the $272 resistance level could open the door for a test of the $300 handle. If there is a clear break above the $300 barrier, the price could rise towards the $310 level in the coming days.
Recently, Solana announced its Onchain Holiday shop, where users can purchase gifts featuring exclusive merchandise from the ecosystem, including Bonk, Wif, Ponke, Wen, Send, Claynosaurz, SMBs, and Backpack.
Another Pullback in SOL?
On the other hand, SOL could face difficulties in surpassing the $250 resistance level and might experience another pullback. The immediate support level is around $232, while the first major support level is near $220. If the price drops below this level, it could test the 50-day simple moving average (blue line) at $210.
If the daily close is below the 50-day simple moving average (blue line), the price could decline further. In this scenario, Solana could drop towards the $175 support zone. Any additional losses could push SOL towards the $155 support zone in the near future.
Overall, Solana’s price indicates a potential increase above $240. However, for SOL to challenge the $300 handle, it must settle above the $250 and $265 levels.