Solana, Buying Power Not Dead... If It Breaks $98, It Will Explode

▲ Solana (SOL)

Solana (SOL) failed to stay above the $98 line and gave back some of its gains. Despite a short-term correction, the price is moving above $94 and the 100-hour Simple Moving Average, and an analysis suggests that if it breaks through the $98 resistance line again, it could continue its attempts for further upside.

NewsBTC reported on the 13th that Solana entered a downward correction after failing to settle above $98. Solana showed a short-term correction trend by falling below $96 against the US dollar, and slipped below the 23.6% Fibonacci retracement level of the upward move from the $87.61 low to the $98.47 high.

Solana once tested the $93.65 support level. An hourly chart for the Solana/USD trading pair shows an upward trend line forming with support at $93, and the current price remains above $94 and the 100-hour Simple Moving Average. The short-term resistance is near $96, and the next major resistance is presented at $98.

The key resistance level is $102. An analysis suggests that if Solana forms a closing price above the $102 resistance zone, a stable upward trend could begin. Subsequent major resistance is $105, and if the uptrend continues further, a move to $112 is considered possible.

Conversely, if Solana fails to break the $96 resistance, a downward trend could resume. The initial downside support zone is where $94, the uptrend line, and the 50% Fibonacci retracement level of the rise from the $87.61 low to the $98.47 high converge. The first major support level is presented at $90.

If a downside breakout occurs below $90, Solana could be pushed down to the $88 support zone. An analysis also suggests that if a closing price is formed below $88, it could fall to the $84 support level in the short term. Key support levels are presented at $94 and $90, and key resistance levels are $96 and $98.

Technical indicators partially supported the possibility of a short-term rebound. The hourly Moving Average Convergence Divergence (MACD) is gaining momentum in the bullish zone, and the hourly Relative Strength Index (RSI) is above the 50 line. Solana's short-term direction is expected to be determined by whether it breaks through the $96 and $98 resistance levels.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*