Key Takeaways:
- SOL price started a fresh increase above the $35 resistance zone.
- It broke a key bearish trend line with resistance near $33.10 on the 4-hours chart.
- A clear move above the $40 level could send the price towards $50.
Solana’s SOL gained over 15% and traded above $35. The price is now consolidating and the bulls might aim a move above the $40 resistance.
Solana (SOL) Price Starts Steady Increase
This month, SOL formed a strong base above the $30 support zone against the US Dollar. The price remained well bid above the $30 level and slowly started a steady increase.
The price was able to clear a couple of key hurdles near the $32 and $33 levels, similar to bitcoin and ethereum. There was a move above the $35 resistance level and the 50 simple moving average (blue, 4-hours).
Solana’s 4-hours price chart | Source: SOL/USD on TradingView.com
Besides, the price cleared a key bearish trend line with resistance near $33.10 on the 4-hours chart. The bulls were able to push the price above the 23.6% Fib retracement level of the main decline from the $48.42 swing high to $30.00 low.
The price is now consolidating near the $38.50 level and is well above the 50 simple moving average (blue, 4-hours). On the upside, an immediate resistance is near the $39.20 level.
The 50% Fib retracement level of the main decline from the $48.42 swing high to $30.00 low is also near the $39.20 level to act as a barrier. The next major resistance is near the $40 zone. A clear wave above the $40.00 level could start a major rally in the near term.
In the stated case, the price may perhaps rise towards the $50 zone. If there is no push above $39.20 or $40, the price might start a downside correction. An initial support is near the $37.00 level.
The next major support is near $36.20. The main support sits near the 34.20 level and the 50 simple moving average (blue, 4-hours). A close below $34.20 may perhaps start a strong decline. In the stated case, the price might even test the $32 support.
Overall, SOL price is gaining pace above the $35 and $37 levels. If the bulls clear the $40 barrier, the price could drift towards the $50 level. Conversely, there might be a fresh dip towards the $34.20 level.
