Key Takeaways:
- SOL price is signaling a new increase above the $20.50 resistance zone.
- It cleared a major bearish trend line with resistance near $19.65 on the 4-hour chart.
- The price could rise to $23 if it clears the $21.50 resistance.
NEW DELHI (CoinChapter.com) — Solana’s SOL is rising from the $18.70 zone. The price signals a bullish breakout and might climb further toward the $23 zone.
Solana (SOL) Price Aims Higher
After a steady decline, SOL price found support near the $18.70 zone against the US Dollar. The price saw a strong bullish reaction from the $18.70 level and increased significantly.
There was a move above the $19.50 and $20.00 resistance levels. Next, the bulls pumped the price above a major bearish trend line with resistance near $19.65 on the 4-hour chart. It also settled above the 50 simple moving average (blue, 4 hours).
It is now consolidating gains similar to Bitcoin and Ethereum and testing the 76.4% Fib retracement level of the main decline from the $21.52 swing high to the $18.70 low.
On the upside, immediate resistance sits near the $21.20 level. The next major resistance is near the $21.50 zone (a multi-touch zone). A clear wave above the $21.50 level could start a fresh surge soon.
In the stated case, the price may rise toward the $23.00 resistance or the 1.618 Fib extension level of the main decline from the $21.52 swing high to the $18.70 low. Any more gains could send Solana toward the $24.00 resistance zone.
Bearish Reaction?
Conversely, SOL might struggle to gain bullish momentum above the $21.20 and $21.50 levels. In this case, it might start a downside correction.
Initial support is near the $20.50 level. The next major support is near $20.00 and the 50 simple moving average (blue, 4 hours). A close below $20.00 may send the price lower toward the $19.20 support. Any more losses may open the doors for a move toward the $18.70 level in the coming days.
Overall, the SOL price consolidates gains above the $20.00 and $20.50 support levels. If the bulls remain in action and push the price above the $21.50 resistance, there could be a drift toward the $23 resistance in the near term. Conversely, the price might correct lower and revisit the $20 support zone.
