Why SOL Price Correction is Temporary, and the Rally is Still Going Strong – Here’s Why

Why SOL Price Correction is Temporary, and the Rally is Still Going Strong - Here's Why


Solana Price Surges Above $100 Resistance

The price of Solana (SOL) has experienced a significant rally, surpassing both the $90 and $100 levels. Unlike Bitcoin and Ethereum, SOL even managed to rally above $120, reaching a new multi-week high near $126.13. However, the price is currently undergoing a correction as it dipped below $115 and $112.

Nevertheless, SOL remains in an uptrend and is trading above $100 and the 100 simple moving average (4 hours). On the 4-hour chart of the SOL/USD pair, there is a key bullish trend line forming with support around $102.

If the price manages to maintain above the $100 support level, it could initiate another rally. The immediate resistance lies at $112, followed by major resistance levels at $120 and $125. A successful close above $125 could set the stage for further gains towards $132 and potentially even $145.

Possible Downside for SOL

In the event that SOL fails to break above the $120 resistance level, it may continue to move downwards. The initial support lies at around $100. If this support is breached, the next major support is near $90 or the 61.8% Fibonacci retracement level.

A close below the crucial support level of $80 could result in a further decline towards the $68 support level in the near future.

Technical Indicators

The MACD indicator on the 4-hour chart for SOL/USD suggests a loss of bullish momentum. Additionally, the Relative Strength Index (RSI) is currently below 50, indicating a bearish sentiment.

Hot Take: Solana’s Rally Continues with Potential for Further Gains

Solana’s recent surge above the $100 resistance level and its ability to maintain an uptrend amidst a correction is a positive sign for investors. With the formation of a bullish trend line and support at $102, there is a strong possibility of another rally in the near future.

However, caution should be exercised as failure to break above the $120 resistance level could result in further downside. It is important to monitor key support levels at $100 and $90, as well as resistance levels at $112, $120, and $125.

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Overall, Solana’s performance in the cryptocurrency market remains promising, but it will be crucial to observe how it responds to various levels of support and resistance in order to gauge its future trajectory.

Author – Contributor at Lolacoin.org | Website

Newt Bettec emerges as an intellectual voyager at the intersection of crypto analysis, meticulous research, and editorial mastery. Within the digital labyrinth of cryptocurrencies, Newt’s intellect traverses intricate corridors, resonating with seekers of diverse inclinations. His talent for unraveling complex threads of crypto intricacies seamlessly blends with his editorial finesse, transmuting intricacy into an engaging tapestry of understanding. A guiding star for both audacious explorers and curious neophytes journeying through the crypto galaxy, Newt’s insights forge a compass for insightful decision-making amidst the ever-evolving universe of digital assets. With the precision of a wordsmith, they craft a narrative that enriches the evolving chronicle of the crypto cosmos.