Key Takeaways:
- SOL price rallied toward $25 before it corrected lower.
- It crushed a major bearish trend line with resistance near $19.95 on the daily chart.
- Solana could find support near $20 or the 50-day simple moving average (blue).
NEW DELHI (CoinChapter.com) — Solana’s SOL is correcting gains from the $25 resistance. The bulls might remain active above $20 and aim for another rally soon.
Solana Price Retreats From $25
As discussed in the last SOL price prediction, there was a steady increase from the $17.40 zone. The price gained pace after it broke the key $20 resistance zone.
Besides, it cleared a major bearish trend line with resistance near $19.95 on the daily chart. The upward move gained pace above the $22 resistance zone and the 50-day simple moving average (blue), opening the doors for more gains.
SOL did rally close to our first target of $25. It tested the 50% Fib retracement level of the downward move from the $32.50 swing high to the $17.36 low.
It seems like the Bears managed to defend the $25 resistance zone. Solana is now correcting gains and trading below the $23 level. However, it is still placed nicely in a bullish zone, unlike Bitcoin and Ethereum in the short term.
Immediate support is seen near the $22.00 level. The main support is now forming near the $20.50 level or the 50-day simple moving average (blue). If the SOL price stays above the $20.00 pivot level, a fresh increase is possible.
If the bulls fail to protect the $20.00 support and there is a close below the 50-day simple moving average (blue), there is a risk of trend change. The price could revisit the $17.40 support zone in the stated case.
Fresh Rally In SOL Price?
Conversely, the price could stay above the $20.00 support zone and start a fresh increase. An Initial hurdle on the upside is visible near the $23.50 level.
The key breakout zone is now forming near $25, above which SOL could test the 76.4% Fib retracement level of the downward move from the $32.50 swing high to the $17.36 low at $28.90. Any more gains might send the price toward the $32 level.
Overall, the SOL price is correcting gains but sitting above major support. If Solana stays above the $20 support, there could be a fresh rally toward $25 or even $28.90. Conversely, it could take a hit and revisit the $17.40 support.
