"If resistance isn't broken, rally is over"...Solana, put to the test by buying pressure

▲ Source: Solana Twitter

Solana (SOL) has started to rebound from the $83.5 support line, but analysis suggests that it can only continue its upward trend if it breaks past the $88.5 and $90 resistance lines.

NewsBTC reported on May 22 (local time) that Solana confirmed support near $83.5 and recovered some of its losses, but is now consolidating below $88.5, testing its ability to sustain the uptrend. Solana successively recovered $85 and $86, showing a trend of trading above the 100-hour simple moving average.

According to analysis, Solana has surpassed the Fibonacci 38.2% retracement level of the downtrend from the $93.63 high to the $83.35 low. However, selling pressure still holds strong below $88, and an ascending channel with $88.5 as resistance has formed on the hourly chart.

The short-term resistance is presented as $88, and the major resistance as $88.5. The $88.5 level also aligns with the Fibonacci 50% retracement level of the downtrend from the $93.63 high to the $83.35 low. If the $90 resistance line is broken on a closing basis, the upward trend could strengthen, with subsequent major resistance levels at $92 and $94.

Conversely, if Solana fails to break the $88.5 resistance line, downward pressure could increase again. The first support line on the downside is presented as $86.2, and the major support line as $85. Analysis suggests that if it falls below $85, the possibility of retesting the $83.5 support line increases, and if the closing price forms below $83.5, it could decline to the $80 range in the short term.

In terms of technical indicators, the hourly Moving Average Convergence Divergence (MACD) is losing momentum in the bearish zone, while the hourly Relative Strength Index (RSI) is above the 50 line. NewsBTC presented Solana's major support levels as $86.2 and $85, and major resistance levels as $88.5 and $90.

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