Key Takeaways:
- SOL price is consolidating gains above the $90 support zone.
- A crucial breakout pattern is forming with support at $85.00 on the daily chart.
- Solana could dip a few times before the bulls aim for an upside break to $150.
New Delhi(Coinchapter.com): Solana (SOL) is still in a strong uptrend above $85. The price is showing signs of a fresh rally unless there is a daily close below $80.
Solana Price Holds Uptrend Support
In the last Solana price prediction, we discussed why SOL price could start a downside correction. The price was signaling a short-term top near the $125 zone. The price did start to drop and traded below the $115 support zone.
There was a sharp decline below the $105 and $100 support levels. However, the price remained in a positive zone above the 50-day simple moving average (blue).
Finally, SOL price spiked toward the $85 support zone like Bitcoin at $40,000. The bulls defended the 50% Fib retracement level of the upward move from the $51.30 swing low to the $126.66 high. There was a strong bullish reaction from the $85 support zone.
The price recovered losses and climbed above the $100 level. Solana is now facing resistance near the $105 zone or the 50% Fib retracement level of the downside correction from the $126.66 swing high to the $85.00 low.
More importantly, there is a crucial breakout pattern forming with support at $85.00 on the daily chart. The current price action and technical patterns suggest that there could be another minor decline from the $105 zone.
The first major support is near the $90 level. The next key support could be the triangle trend line at $85. The main support is now forming near the $80 zone or the 50-day simple moving average (blue). A downside break below the $80 support could send SOL price toward the $50 zone.
Fresh Surge in SOL?
Conversely, Solana bulls could protect $90 or $85 and aim for a fresh increase. On the upside, the bulls might face resistance near the $105 level. The first major resistance sits at $110.
A clear upside break above the $110 resistance could fuel another rally. In the stated case, SOL could even clear the $125 resistance zone. The next stop for the bulls might be near $138, above which SOL might accelerate higher toward the $150 zone.
Overall, SOL price is still in a strong uptrend above the $85 zone and might soon attempt a fresh increase toward $125 or $138. If not, the bulls might struggle to protect the $80 support.
