On Tuesday, SOL's price broke out above an 11-month-long resistance trendline, which coincided with Bitcoin's surge above the key psychological level of $30,000. This breakout signals a potential bullish momentum for SOL, reflecting a positive trend for the cryptocurrency.
SOL/USD trading pair has breached the $23 resistance level, indicating a potential uptrend in SOL's price. A break above the $25 resistance level would further confirm the bullish momentum. Recently, SOL's price found support around the $20 area, which served as a base for an upward price movement, resembling the price patterns of Bitcoin and Ethereum.
The SOL/USD 4-hour chart reflects a bullish sentiment as the price surged above $23.20, marking a 17% increase and positioning the price in a positive zone. The price breakout was accompanied by a significant breach of a major bearish trend line resistance level at $20.40. However, the price is currently consolidating gains after reaching a high of $24.47.
Currently, SOL price is trading comfortably above $24 and the 21 simple moving average (4 hours) indicates a bullish momentum. The price is also above the 23.6% Fibonacci retracement level of the upward movement from the $19.87 swing low to the $24.47 high, suggesting a potential continuation of the uptrend.
SOL's immediate obstacle is at the $24.50 level. If the price successfully breaches this level, the next major resistance level would be around $25.00. A breakout above this level could potentially trigger further bullish momentum, leading to a rise towards the $28 resistance level. Further gains might even push the price towards the $30 level.
In case #SOL encounters difficulty in breaching the $24.50 resistance, it may undergo a downside correction. The initial support level would be at $23.50, with the first major support level being at $22.20. This level corresponds to the 50% Fibonacci retracement level of the upward move from the $19.87 swing low to the $24.66 high. If this support level fails, the price may test $21.00, followed by the next major support level near $20.
RESISTANCE LEVEL : $25.00-$26.50
SUPPORT LEVEL : $23.00-$22.00
Disclaimer: #crypto is not regulated and can offer considerable risks. There may be no regulatory remedies available in the event of any losses resulting from price analysis. As a result, before engaging in any transactions involving crypto products, each investor must perform in-depth examination or seek independent advice.
