Key Takeaways:
- SOL price struggled near the $40 zone and corrected lower.
- A major contracting triangle is forming with resistance near $37.50 on the 4-hours chart.
- There could be a strong rally if the bulls push the price above $37.50 and $38.50.
Solana’s SOL is moving in a key range above the $34.50 level. It could start a new rally if there is a clear move above the $38.50 resistance.
Solana (SOL) Price Could Rally
After forming a base above the $30.00 level, SOL started a decent increase against the US Dollar. Next, the price climbed above the $34.50 and $35.00 resistance levels.
There was a clear move above the $37.40 resistance zone and the 50 simple moving average (4 hours, blue). Besides, the price climbed above the 50% Fib retracement level of the downward move from the $42.91 high to the $30.86 low.
However, the bulls struggled to clear a major hurdle near the $38.80 and $39.20 levels. They made several attempts, but the price stayed below $40.00. Finally, a high was formed near $39.20, and the price declined below the $37.00 level.
The bears pushed the price to the 50% Fib retracement level of the upward move from the $30.86 swing low to the $39.20 high.
On the upside, a major contracting triangle is forming with resistance near $37.50 on the 4-hours chart. The next major resistance on the upside is near the $38.50 level. A clear move above the triangle resistance and $40.00 could start a significant rally.
The next major resistance is near $43.00. Any more gains might open the doors for a move towards the $50.00 resistance. If the bulls remain in action, they could even aim a move toward the $62.80 level.
Conversely, the SOL price might fail to clear the $38.50 resistance zone or $40.00. In the mentioned case, the price could continue to decrease.
The next major support is near $34.20 and the triangle lower trend line.
The main support sits at $34.00, or the 61.8% Fib retracement level of the upward move from the $30.86 swing low to the $39.20 high. A close below $34.00 may perhaps start a strong decline. The price might dive towards the $26.20 support in the stated case.
Overall, SOL price is trading inside a major breakout pattern with resistance near $37.50. If the bulls pump the price above $37.50 and $38.50, it could surge above $40. Conversely, there might be a fresh drop to $26.20.
