Solana (SOL) Jumps But Smacks Into $120 Resistance Wall—Can It Break Through?

Aayush Jindal

2 months ago

2 mins read

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Solana started a fresh increase from the $100 support zone. SOL price is now consolidating and might struggle to clear the $120 resistance zone.

SOL price started a fresh increase above the $105 and $112 levels against the US Dollar.
The price is now trading above $105 and the 100-hourly simple moving average.
There was a break above a connecting bearish trend line with resistance at $107 on the hourly chart of the SOL/USD pair (data source from Kraken).
The pair could start a fresh increase if it clears the $120 resistance zone.

Solana Price Gains Over 10%

Solana price formed a base above the $100 support and started a fresh increase, like Bitcoin and Ethereum. SOL gained pace for a move above the $110 and $112 resistance levels.

There was a break above a connecting bearish trend line with resistance at $107 on the hourly chart of the SOL/USD pair. The pair even spiked toward the $120 resistance zone. A high was formed at $120.10 and the price is now retreating lower.

There was a move below the 23.6% Fib retracement level of the upward move from the $101.24 swing low to the $120.10 high. Solana is now trading above $105 and the 100-hourly simple moving average.

Solana Price — Source: SOLUSD on TradingView.com

On the upside, the price is facing resistance near the $118 level. The next major resistance is near the $120 level. The main resistance could be $125. A successful close above the $125 resistance zone could set the pace for another steady increase. The next key resistance is $132. Any more gains might send the price toward the $140 level.

Another Decline in SOL?

If SOL fails to rise above the $118 resistance, it could start another decline. Initial support on the downside is near the $112 zone. The first major support is near the $110 level and the 50% Fib retracement level of the upward move from the $101.24 swing low to the $120.10 high.

A break below the $110 level might send the price toward the $105 zone. If there is a close below the $105 support, the price could decline toward the $100 support in the near term.

Technical Indicators

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

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

Major Support Levels – $112 and $110.

Major Resistance Levels – $118 and $120.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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