Solana (SOL) started a fresh increase above the $120 resistance. The current price action is positive, and a push above $135 could accelerate gains.
Solana Price Gains Traction
In the last technical analysis, we discussed the chances of a decent recovery wave in Solana from the $95 zone. The price remained stable, and the bullish candlestick pattern triggered some upside. The bulls pushed the price above the $110-120 resistance range, outperforming Bitcoin.
More importantly, SOL price cleared a key bearish trend line with resistance at $120 on the daily chart. However, the bulls now face a major hurdle near the $132 level and the 50-day simple moving average (blue).
Solana is now consolidating just below the 50-day simple moving average (blue) and eyeing an upside break. To start a decent increase, the price must settle above the $135 zone and the 50-day simple moving average (blue).
Immediate resistance above the $135 level sits near the $142 level. It is close to the 23.6% Fib retracement level of the downward move from the $295 swing high to the $95 low.
A convincing move above the $142 resistance could trigger a fresh surge. The first major resistance sits near the $160 level. The next key resistance could be $175. A clear move above the $175 level could send the price toward the next key resistance at $195 and the 50% Fib retracement level of the downward move from the $295 swing high to the $95 low.
A successful daily close above the $195 resistance might send the price toward the $220 level. Any more gains might send the price toward the $270 level or $295 in the coming weeks.
Another Decline In SOL?
If SOL fails to surpass the $135 resistance and $145, another decline could occur. Immediate support is near the $120 level. The first major support sits near the $115 level and the same trend line. If there is a close below the $115 support, the price might dive and test the $102 support.
The next key support level could be the $100 level. In the near term, any more losses could send SOL toward the $84 support zone.
Overall, Solana’s price is showing a few positive signs above the $120 level. SOL must settle above the $135 resistance zone and clear $145 to start a fresh increase.
