Key Takeaways:
NEW DELHI (CoinChapter.com) — Solana trimmed most gains and traded below $150. SOL is now trading near a major support and might attempt a fresh increase.
Earlier this year, we saw a massive increase in Solana prices from the $10 zone. SOL jumped over 15x and even broke the $200 level. Finally, it traded as high as $210 and recently started a major decline like Bitcoin and Ethereum.
It declined below the $180 and $162 support levels, as discussed in the last analysis. There was a clear move below the 23.6% Fib retracement level of the main increase from the $7.92 swing low to the $210 high. SOL is down over 40% and there was even a drop below the $130 level.
However, Solana managed to stay above the $100 pivot level and is also well above the 50-week simple moving average (blue). The price is now testing a crucial bullish trend line with support at $120 on the weekly chart.
If the SOL price stays above the trend line support, the bulls might attempt a fresh increase. Immediate resistance on the upside is near the $145 level, and the first major resistance is near the $162 level.
If the bulls pump the price above the $162 resistance, the SOL price could start another rally. The next target for the bulls could be $185. Any more gains might send Solana toward the $200 handle.
Conversely, the SOL price might struggle to recover above the $145 resistance and continue to move down. Immediate support is near the $130 level. The first major support sits at $120 and the trend line. The main support is now forming near the $110 level. It is close to the 50% Fib retracement level of the main increase from the $7.92 swing low to the $210 high and coincides with the recent spike support.
A weekly close below the $120 and $110 support levels might spark strong bearish moves. In the stated scenario, Solana could revisit the $85 level. The next target for the bears might be $55.
The Solana ecosystem continues to evolve. A recent example was its successful integration with Pundi X Labs. Users can now buy USDT using Solana-supported wallets.
Overall, the SOL price reaches an important support zone at $110-$120. If the bulls protect the $110 support, there could be a fresh increase. If not, Solana might start nosedive toward the $85 support.
LUCKNOW (CoinChapter.com) — The Sei Foundation has announced a governance proposal to transition the network…
Grand Cayman, Cayman Islands, May 21st, 2024, ChainwireSet to hit Mainnet this summer, Sui’s new…
Ethena token might have more bullish cues coming from the success of the project's stablecoin…
NAIROBI (CoinChapter.com) — The probability of a Ethereum(ETH) Spot ETF receiving approval has skyrocketed from 25%…
YEREVAN (CoinChapter.com) — Lilian Nurieva, former Head of Networks at the Russian crypto investment fund…
Key Takeaways: Ethereum rallied 20% after reports that the SEC asked exchanges to update 19B-4…