NEW DELHI (CoinChapter.com) — Solana (SOL) extended its rally by over 20% after it settled above $40.00. The price is consolidating gains and eyeing a move above $50.00.
Solana Price Remains In Strong Uptrend
In the last SOL price prediction, we discussed the importance of the $40.00 resistance zone. The bulls did succeed in pushing the price above the $40.00 barrier. The price settled above $40.00 and then started a fresh rally.
It pumped over 20% and broke many hurdles. Finally, it tested the $48.80 resistance and is currently showing signs of high profit-taking. There were a couple of swing moves, but the bulls protected strong downsides and pushed the price back above $45.00.
The price is now trading above the $47.50 level and the 50 simple moving average (blue, 4 hours). The current price action suggests high chances of more upsides, like Bitcoin and Ethereum.
There is also a major bullish trend line forming with support near $44.50 on the 4-hour chart. The trend line is close to the 50% Fib retracement level of the upward move from the $38.03 high to the $48.83 high.
On the upside, Solana is facing resistance near the $48.80 level. The first major resistance is near the $50.00 level. A clear move above the $50.00 resistance level could send the price surging toward the $55.00 level in the coming sessions.
Dips Supported in SOL?
If there is a small pullback, the SOL price might find support near the bullish trend line at $44.50. The first major support is near the 61.8% Fib retracement level of the upward move from the $38.03 high to the $48.83 high at $42.20.
The 50 simple moving average (blue, 4 hours) is also currently near the $42.20 level. Therefore, a downside break and close below the $42.20 support might change the trend in the short term.
In the stated case, Solana could decline toward the $40.00 level. Any more losses might open the doors for a move toward the $38.00 level in the coming days.
Overall, SOL price is still showing strong bullish signs above the $44.50 level. It seems like the price could soon jump above $50.00 and test $55.00. If the bulls fail to protect the $44.50 support, there could be a drop toward the $38.00 support.
