Solana started a fresh increase above the $240 zone. SOL price is now consolidating gains below $240 and might aim for another increase if it stays above $230.
SOL price started a fresh upward move above the $240 and $242 levels against the US Dollar.
The price is now trading below $240 and the 100-hourly simple moving average.
There is a key bearish trend line forming with resistance at $238 on the hourly chart of the SOL/USD pair (data source from Kraken).
The pair could extend losses if it dips below the $230 zone.
Solana Price Consolidates Gains
Solana price started a decent increase after it settled above the $220 zone, beating Bitcoin and Ethereum. SOL climbed above the $235 level to enter a short-term positive zone.
The price even smashed the $242 resistance. The bulls were able to push the price above the $245 barrier. A high was formed at $250 and the price recently started a downside correction. There was a move below the 23.6% Fib retracement level of the upward wave from the $200 swing low to the $250 high.
However, the bulls were active above $230. Solana is now trading below $240 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $238 level. Besides, there is a key bearish trend line forming with resistance at $238 on the hourly chart of the SOL/USD pair.
The next major resistance is near the $242 level. The main resistance could be $250. A successful close above the $250 resistance zone could set the pace for another steady increase. The next key resistance is $262. Any more gains might send the price toward the $280 level.
More Downside In SOL?
If SOL fails to rise above the $238 resistance, it could start another decline. Initial support on the downside is near the $232 zone. The first major support is near the $229 level or the 50% Fib retracement level of the upward wave from the $200 swing low to the $250 high.
A break below the $229 level might send the price toward the $220 support zone. If there is a close below the $220 support, the price could decline toward the $212 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is losing pace in the bullish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $229 and $220.
Major Resistance Levels – $238 and $250.
