Key Takeaways:
- SOL price started a major increase and surpassed $40
- It broke a major bearish trend line with resistance near $37.50 on the 4-hours chart.
- The bulls seem to be eyeing at least a test of the $50 barrier in the near term.
Solana’s SOL gained pace after it broke a technical pattern. The bulls are now eyeing a move towards the next major hurdle at $50.
Solana (SOL) Price Gained 30%
After forming a base above the $31.20 level, SOL started a fresh increase against the US Dollar. The price was able to clear the $35.00 and $36.00 resistance levels.
There was a strong move above the $37.50 resistance zone and the 50 simple moving average (4-hours, blue). Besides, the price climbed above the 50% Fib retracement level of the key decline from the $43.00 swing high to $30.80 base.
Solana’s 4-hours price chart | Source: SOLUSD on TradingView.com
More importantly, the price broke a major bearish trend line with resistance near $37.50 on the 4-hours chart. It opened the doors for a steady increase as discussed in the last SOL price analysis.
The bulls pumped the price above the $40 and $42 resistance levels. A high was formed near $46.08 and the price is now consolidating gains. It already tested the 23.6% Fib retracement level of the upward move from the $31.80 swing low to $46.08 high.
On the upside, an immediate resistance is near the $45.00 level. The next major resistance is near the $46.08 level. A clear move above the $46.00 level and the recent high could set the pace for another strong increase.
In the stated case, the price could test the $50 level. The next major resistance is near $52.00. Any more gains might open the doors for a move towards the $55.00 resistance.
Dips Limited?
Conversely, SOL price might fail to clear the $45.00 resistance zone or $46.00. In the mentioned case, the price could start a downside correction. An initial support is near the $42.80 level. The next major support is near $40.00.
The main support sits at $39.00 or the 50% Fib retracement level of the upward move from the $31.80 swing low to $46.08 high. A close below $39.00 may perhaps start a strong decline. In the stated case, the price might dive towards the $32.20 support.
Overall, SOL price broke a major resistance near $37.50. If the bulls remain in action, there could be a steady increase towards the $50 level. Conversely, there might be a fresh drop to $40.
