Key Takeaways:
- The SOL price has jumped over 10% daily, trading above the $20.50 resistance zone.
- It broke a major bearish trend line with resistance near $19.90 on the daily chart.
- The price could rise to $25 if it clears the $22.50 resistance.
NEW DELHI (CoinChapter.com) — Solana (SOL) has extended its price rally pace above $21.20 on July 11. It now eyes the $25-26.50 range as its next upside target. Here’s how.
Solana (SOL) Price Starts Fresh Rally
After a strong decline, the SOL price found support near $13. The price traded as low as $13.02 before reversing course to the upside. As of July 11, the price had already reached the $15-16.50 resistance range.
In doing so, the SOL price broke its prevailing descending trendline resistance (blue) near $19.90 on the daily chart. It opened the doors for a move above the $20 resistance and the 50-day simple moving average (blue).
Meanwhile, the Solana token bulls pushed the price above the 61.8% Fib retracement level (~$20.70) of the key drop from the $25.45 swing high to the $13.02 low. It is up over 5% daily, outperforming Bitcoin and Ethereum.
The SOL price now struggles to clear a key resistance near the $22.50 level. It is close to the 76.4% Fib retracement level, with the next major resistance near the $23.85 level.
A successful daily close above the $23.85 resistance could increase the price. The next key resistance is near the $25.50 zone. If there is a clear move above $15.50, Solana could rise toward the $26.50 resistance zone.
Downside Correction?
Conversely, SOL might struggle to clear the $22.50 resistance. The price might start a downside correction and test the $20.80 level in this case.
The first major support is near the $20.00 level, below which the price could find bids near the 50-day simple moving average (blue). If the price fails to stay above the $20 support and the 50-day SMA, a sharp move could be toward $16.50. Any more losses may open the doors for a drop toward the $14.20 support.
Overall, the SOL price is gaining pace above the $20.00 resistance. If the bulls remain in action, another rally could be toward the $25.50 resistance. Conversely, the price might correct lower and revisit the $20.00 support zone.
