Solana (SOL) found support near $192 and regained traction. The price is rising and might see a sharp increase if it clears the $230 resistance.
Solana Price Eyes Fresh Surge
In the last technical analysis, we saw a downside correction in Solana below the $220 support zone. SOL underperformed Bitcoin and dipped below $200. Finally, the bulls took a stand near the $192 zone.
A low was formed at $191.30, and the price is again rising. The bulls were able to keep the price above the $200 pivot level and the 50-day simple moving average (blue). There was a clear move above $212 and the price tested the 50% Fib retracement level of the downward move from the $253 swing high to the $192 low.
Solana is now back above $220 and trading well above the 50-day simple moving average (blue). The current price action and the last daily candle suggest an increase in bullish momentum. There is also a connecting bullish trend line formed with support at $202 on the daily chart.
To start a fresh increase, the price must stay above the trend line. Immediate resistance on the upside sits near the $222 level. The first major resistance could be $230 and the 61.8% Fib retracement level of the downward move from the $253 swing high to the $192 low.
If there is a daily close above the $230 resistance, the price could drift toward the $238 level. The next key resistance could be $242, above which the bulls could aim for a test of $250. Any more gains might send the price toward the $265 level in the coming days.
Another Decline In SOL?
If Solana remains below $238, there could be a fresh decline. Immediate support is near the $212 level. The first major support sits near the $205 level and the 50-day simple moving average (blue).
The main breakdown zone could be near the trend line and $200. If there is a daily close below the trend line support and $200, the price could revisit $192. If the bulls fail to protect the $192 support, there could be a drop toward the $172 support zone. Any more losses could send SOL toward the $155 level in the near term.
Overall, Solana price is showing positive signs above $212. To continue higher and gain momentum like Ethereum, SOL price must settle above the $230 and $238 resistance levels. If not, the price could start another decline and test the $202 support.