What to Know:
- •Solana climbed above $200 and is trading above its 100‑hourly simple moving average, with a bullish trend line forming at $199 support
- •The cryptocurrency faces immediate resistance at $208, which aligns with the 76.4% Fibonacci retracement level from its recent swing high to low
- •Technical indicators including the MACD and RSI suggest bullish momentum, though failure to clear $208 could trigger a pullback to support levels at $195 or $190
Rally Extends Past Key Technical Markers
Solana began its upward movement after settling above the $172 zone, outperforming both Bitcoin and Ethereum during the same period. The token climbed past the $180 level, entering what traders consider short‑term positive territory. It then broke through the $188 resistance that had previously capped gains.
Bulls pushed the price above the 61.8% Fibonacci retracement level of the main decline from the $225 swing high to the $155 low. A bullish trend line has formed with support at $199 on the hourly chart of the Solana‑U.S. dollar pair, according to data from Kraken. The cryptocurrency is now trading above $202 and the 100‑hourly simple moving average.
The price faces resistance near the $208 level.
This zone corresponds with the 76.4% Fibonacci retracement level of the main drop from $225 to $155. The next major resistance sits at $218.
The main resistance level is at $225. A successful close above that threshold could set the pace for another steady increase, with the next key resistance at $242. Further gains might push the price toward $250.
Potential Pullback Scenarios and Support Zones
If Solana fails to rise above the $208 resistance, it could start another decline. Initial support on the downside is near the $199 zone and the trend line. The first major support level is at $195.
A break below $195 might send the price toward the $190 support zone.
If the price closes below $190, it could decline toward $180 in the near term. The hourly MACD indicator is gaining pace in the bullish zone, while the RSI sits above the 50 level.
Technical analysts use Fibonacci retracement levels to identify potential support and resistance zones by measuring the distance between significant price points.
The tool applies ratios derived from the Fibonacci sequence to predict where prices might stall or reverse. Simple moving averages, meanwhile, smooth out price data by calculating the average closing price over a specific number of periods, helping traders identify trends.
The MACD, or moving average convergence divergence, measures momentum by showing the relationship between two moving averages. The RSI, or relative strength index, is a momentum oscillator that ranges from zero to 100 and helps identify overbought or oversold conditions. Readings above 50 generally indicate bullish momentum.
Trend lines connect a series of price points to show the general direction of an asset. A bullish trend line slopes upward and acts as support, with prices typically bouncing off this line during pullbacks.
Closing Thoughts
Solana's ability to clear the $208 resistance will likely determine whether the current rally extends or stalls. The major support levels to watch are $199 and $190, while resistance levels are concentrated at $208 and $218.