Solana (SOL) Rebound Faces Major Test Near Key Resistance Zone

Solana found support at $83.50 and corrected some losses. SOL price is now consolidating below $88.50 and might struggle to continue higher.

• SOL price started a decent recovery wave above $85 and $86 against the US Dollar.
• The price is now trading above $86 and the 100-hourly simple moving average.
• There is a rising channel forming with resistance at $88.50 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could continue to move up if it clears $88.50 and $90.00.

Solana Price Starts Recovery

Solana price remained stable and started a decent recovery wave from $83.50, like Bitcoin and Ethereum. SOL was able to climb above the $85 level.

There was a move above the 38.2% Fib retracement level of the downward move from the $93.63 swing high to the $83.35 low. However, the bears remained active below $88. There is also a rising channel forming with resistance at $88.50 on the hourly chart of the SOL/USD pair.

Solana is now trading above $86 and the 100-hourly simple moving average. On the upside, immediate resistance is near the $88.00 level. The next major resistance is near the $88.50 level or the 50% Fib retracement level of the downward move from the $93.63 swing high to the $83.35 low.

The main resistance could be $90. A successful close above the $90 resistance zone could set the pace for another steady increase. The next key resistance is $92. Any more gains might send the price toward the $94 level.

Another Decline In SOL?

If SOL fails to rise above the $88.50 resistance, it could continue to move down. Initial support on the downside is near the $86.20 zone. The first major support is near the $85.00 level.

A break below the $85.00 level might send the price toward the $83.50 support zone. If there is a close below the $83.50 support, the price could decline toward the $80 zone in the near term.

Technical Indicators

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

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

Major Support Levels – $86.200 and $85.00.

Major Resistance Levels – $88.50 and $90.00.