Solana (SOL) Recovery Underway But Momentum Still Needs Stronger Follow-Through

Solana started a recovery wave above the $125 zone. SOL price is now consolidating and faces hurdles near the $135 zone.

• SOL price started a decent recovery wave above $125 and $128 against the US Dollar.
• The price is now trading above $130 and the 100-hourly simple moving average.
• There is a bullish trend line forming with support at $130 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could continue to move up if it clears $135 and $140.

Solana Price Aims Recovery

Solana price remained stable and started a decent recovery wave above $125, like Bitcoin and Ethereum. SOL was able to climb above the $130 level.

There was a move toward the 50% Fib retracement level of the downward move from the $145 swing high to the $121 low. Besides, there is a bullish trend line forming with support at $130 on the hourly chart of the SOL/USD pair.

Solana is now trading above $130 and the 100-hourly simple moving average. On the upside, immediate resistance is near the $135 level or the 61.8% Fib retracement level of the downward move from the $145 swing high to the $121 low.

The next major resistance is near the $140 level. The main resistance could be $145. A successful close above the $145 resistance zone could set the pace for another steady increase. The next key resistance is $155. Any more gains might send the price toward the $162 level.

Another Drop In SOL?

If SOL fails to rise above the $135 resistance, it could continue to move down. Initial support on the downside is near the $130 zone. The first major support is near the $127 level.

A break below the $127 level might send the price toward the $124 support zone. If there is a close below the $124 support, the price could decline toward the $120 zone in the near term.

Technical Indicators

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

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

Major Support Levels – $130 and $124.

Major Resistance Levels – $135 and $140.