Key Takeaways:
- SOL price is holding gains above a strong uptrend near the $120 zone.
- A major contracting triangle is forming with resistance at $175 on the weekly chart.
- Solana must stay above $120 to start a fresh surge toward $200.
New Delhi(Coinchapter.com): Solana (SOL) price is consolidating above $120 and $130. SOL could gain bullish momentum if it surpasses $160 and then $175.
Solana Price Holds Key Uptrend Support
After a major decline, Solana remained stable near the $120 support zone. It spiked and tested the 50-week simple moving average (blue) where the bulls took a strong stand. A low was formed at $109.79 and the price started a fresh increase, like Bitcoin and Ethereum.
There was a move above the $125 and $130 resistance levels. SOL even cleared the 50% Fib retracement level of the downward move from the $194.32 swing high to the $109.79 low.
However, the bears are active near the $160 and $162 levels. Solana is now consolidating near the $140 level and is well above the 50-week simple moving average (blue). The current price action suggests that the price is struggling to gain bullish momentum above $150.
The first major resistance is near the $162 level. It is close to the 61.8% Fib retracement level of the downward move from the $194.32 swing high to the $109.79 low. If the bulls push the price above the $162 resistance, Solana price could gain bullish momentum.
The next key resistance for the bulls could be $175. There is also a major contracting triangle forming with resistance at $175 on the weekly chart. A close above the triangle resistance could start a fresh surge. In the stated case, the price could rise and test $200. Any more gains might send SOL toward the $220 level.
Another Rejection In SOL?
Conversely, SOL price might struggle to rise above $162 or $175. In the stated scenario, the price might face another drop. The first major support is near the $135 level and the triangle’s lower trend line. The next major support is forming near the $130 level.
The main uptrend support for the current wave sits at $120. If the bulls fail to protect the $120 support, the price might accelerate lower. In the stated scenario, Solana could revisit the $110 level or the 50-week simple moving average (blue). The next key support is near the $100 level, below which SOL price might test $80.
Solana’s adoption continues to grow. Recently, Selecta activated six smart fridges in Paris and more than twenty additional locations throughout France to enable USDC transactions on Solana. Consumers can now buy a snack or drink with ease.
Overall, SOL price is still well above the $120 pivot level. Having said that, Solana must surpass $162 and $175 to continue higher in the medium term.
