Solana (SOL) started a major increase above the $165 zone. The price rallied, tested the $200 resistance, and might continue to rise in the near term.
Solana Price Rallies Over 20%
In the last technical analysis, we discussed the chances of a major increase in Solana above the $155 pivot level. The price gained pace for a move above the $155 and $165 resistance levels. The recent move in Bitcoin sparked bullish moves in SOL.
The bulls were able to pump the price above the 76.4% Fib retracement level of the downward move from the $188 swing high to the $126 low. Finally, the price rallied above the $185 level and tested the $200 resistance zone.
Solana is now well above the $185 level and the 50-day simple moving average (blue). However, the bears are now active near the $200 level. It is close to the 1.236 Fib extension level of the downward move from the $188 swing high to the $126 low.
To start a fresh increase, the bulls need to clear the $200 and $202 levels. If there is a daily close above the $200 resistance, the price could drift toward the $212 level.
The next key resistance could be $220, above which the bulls could aim for a test of $225. It is close to the 1.618 Fib extension level of the downward move from the $188 swing high to the $126 low. Any more gains might send the price toward the $250 level in the coming days.
Downside Correction In SOL?
If Solana remains below $200, there could be a short-term pullback. Immediate support is near the $192 level. The first major support sits near the $185 level. There is also a major bullish trend line forming with support at $185 on the daily chart.
If there is a close below the $185 support, the price might dive and test the $172 pivot level. If the bulls fail to protect the $172 support, there could be a drop toward the $165 support zone. Any more losses could send SOL toward the $155 support zone in the near term.
Overall, Solana price is consolidating below the key barrier at $200. To continue higher and gain momentum, SOL price must settle above the $200 and $202 resistance levels. If not, the price could start another decline and test the $185 support.
