Solana (SOL) experiences a notable surge of over 10%, surpassing $105 and positioning itself for a potential breakout above the $125 resistance level.
Key Takeaways
- SOL sees a robust surge of over 10%, trading above $105 and the 100 simple moving average.
- A breakout above the $125 resistance level could lead to a substantial rally, with the next significant resistance at $138.
- Key technical indicators, including MACD and RSI, signal bullish momentum on the 4-hour chart.
- In case of a downside correction, initial support is anticipated around $108, followed by the $100 level and the 100 simple moving average.
Solana’s Impressive Rally and Technical Outlook
Solana (SOL) has demonstrated remarkable strength, surging over 10% and establishing itself above $105, along with trading comfortably above the 100 simple moving average on the 4-hour chart. This surge positions SOL for a potential breakthrough above the critical $125 resistance zone.
SOL Price Surges 10% As Solana Bulls Aim New High Above $125 pic.twitter.com/VZD3MNTxrs
— shahzadgill (@Shahzad35088757) January 2, 2024
Technical Analysis Highlights Bullish Signals
The rally initiated after SOL found support near $93.50, forming a base for its upward trajectory. Notably, there was a decisive move above the 50% Fibonacci retracement level of the downward movement from the $126.13 swing high to the $93.50 low. A key bullish indicator is the break above a contracting triangle, with resistance around $104 on the 4-hour SOL/USD chart sourced from Kraken.
Solana is currently trading above $105 and has encountered immediate resistance near the $114 level. The primary obstacle lies at the $118 level, representing the 76.4% Fibonacci retracement level.
Potential Downside Scenario
Despite the bullish outlook, there is a cautious note regarding a potential downside correction. If SOL fails to surpass the $118 resistance, it might experience a pullback. Initial support is anticipated around $108, followed by the $100 level and the 100 simple moving average (4 hours).
To Conclude
Solana’s current surge signals a bullish trend, with the potential for a significant breakout above $125. However, the market remains vigilant for a possible downside correction if the $118 resistance is not convincingly breached.
Traders are advised to closely monitor key support levels, including $108, $100, and the 100 simple moving average, to gauge the cryptocurrency’s resilience in the face of market fluctuations.
