Key Takeaways:
- SOL price is up over 20% and approaching the $40 resistance.
- It broke a major bearish trend line with resistance at $24.60 on the weekly chart.
- Solana could struggle near $40, above which it could surge over 75%.
NEW DELHI (CoinChapter.com) — Solana is up over 25% and reaching the $40 milestone. The bears might take a stand near $40. If they fail, SOL could surge toward $75.
Solana Price Reaches First Meaningful Resistance
As discussed in the last SOL price prediction, there were more upsides above the $32 resistance. Solana did rally over 20% and broke many hurdles near the $35 resistance.
If we look at the bigger picture using the weekly chart, the price started a recovery wave after testing $8 in January 2023. This month, it broke a major bearish trend line with resistance at $24.60 on the weekly chart. This is the first real signal of an upside break like Bitcoin.
The last three candles are signaling a bullish scenario for more upsides. The price is now trading well above the $30 pivot level and the 50-week simple moving average (blue).
Recently, there were many positive developments, and Solana Breakpoint 2023 is sparking strong bullish moves in SOL. Key developments include integration with Amazon Web Services Node Runner, Google BigQuery’s launch, and Gameshift (their web3 game API) entering the open beta stage.
Having said that, the SOL price is now reaching the first meaningful resistance at $40. It represents the 23.6% Fib retracement level of the downward move from the $143.50 swing high to the $7.92 low (formed in December 2022).
A clear upside break above the $40 resistance could fuel another rally. In the stated case, the price could rally over 75% and test the next hurdle at $75. It is close to the 50% Fib retracement level of the downward move from the $143.50 swing high to the $7.92 low. Intermediate hurdle could be near the $58 level.
SOL Price MUST Hold Above $32.50
Conversely, the SOL price might complete the current recovery wave at $40 and start another decline. Immediate support is near the $32.50 level.
The first major support sits at $28.80. The main support is now forming near the $22.00 level or the 50-week simple moving average (blue). A weekly close below the $22.00 support level might confirm a local top and downtrend resumption. In the stated scenario, Solana could revisit the $10 level.
Overall, the SOL price is approaching a crucial barrier near the $40.00 resistance. If the bulls pump the price above $40.00, it might be a strong bullish signal. If not, Solana might start a downside correction toward $32.50 or $28.80 in the coming weeks.
