Key Takeaways:
- SOL price is slowly moving higher from the $30.80 support zone.
- A crucial contracting triangle is forming with resistance near $38.50 on the 4-hours chart.
- There could be a strong surge if the bulls push the price above $36.80 and $40.00.
Solana’s SOL is trading in a positive zone above the $33.80 level. It could start a fresh surge if there is a clear move above the $40.00 resistance.
Solana (SOL) Price Could Rally
After a downside correction from the $42.90 level, SOL found support near $30.80 against the US Dollar. A low was formed near the $30.86 level and the price started a fresh increase.
There was a clear move above the $33.80 resistance zone and the 50 simple moving average (4-hours, blue). The price even surpassed the $35.00 resistance zone. It is now facing resistance near the $36.80 level.
Solana’s 4-hours price chart | Source: SOLUSD on TradingView.com
The price seems to be struggling to clear the 50% Fib retracement level of the key decline from the $42.90 high to $30.86 low. The next major resistance on the upside is near the $38.40 level.
Besides, there is a crucial contracting triangle forming with resistance near $38.50 on the 4-hours chart. The triangle resistance coincides with the 61.8% Fib retracement level of the key decline from the $42.90 high to $30.86 low.
A clear move above the triangle resistance and then $40.00 could spark a strong increase. The next major resistance is near $42.90. Any more gains might open the doors for a move towards the $50.00 resistance. The main target for the bulls may perhaps be near the $62.80 level.
Conversely, SOL price might fail to clear the $38.40 resistance zone or $40.00. In the mentioned case, the price could start another decline below the $35.00 support.
The next major support is near $34.00 and the 50 simple moving average (4-hours, blue). The triangle support is also near $33.80. A close below $33.80 may perhaps call for a test of $30.00. Any more losses may perhaps clear the path for a test of the $26.20 support.
Overall, SOL price is eyeing an upside break above the $40.00 resistance zone. If the bulls succeed, the price could accelerate higher towards the $62.80 resistance zone in the coming days. Conversely, there might be a fresh drop to $30.00.
