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21/05/24
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Technical Outlook on the Performance of Solana (SOL)
The chart of SOL/USD shows the activities of the bears prompted the formation of a support base close to $166 prior to the bulls initiating a new move to the upside. The rallies in ETH and BTC were extended to SOL, prompting a move to a positive area.
The bulls pushed SOL past two barrier levels, including $175 and $180. There was a visit to the barrier level at $188. SOL reached levels as high as $188 prior to the current consolidation of gains above the 23.6% Fibonacci correction level of the upswing from $166 swing low to $188 high.
A look at its 4-hour chart shows that it is currently trading at levels above $188, as well as above the 100 SMA. The same chart shows the formation of a major bullish trend line with a support level at $175.
The next support level is close to $185, and the immediate key barrier level is close to $188. If SOL successfully closes past the barrier level at $188, the bulls may be able to pave the way for a more significant upside move. The immediate major barrier level is close to $195. If there are any additional gains, the bulls may be able to push it toward $200.
On the other hand, the failure of the bulls to push SOL clearly past the barrier level at $188 may empower the bears to initiate a new move to the downside. The first support level on the way downward is close to $182. The initial key support level is close to $178, as well as near the trend line.
Likewise, the 50% Fibonacci correction level of the upswing from $166 swing low to $188 high exists at $178, and a move beneath it may prompt a visit to $175. If SOL closes beneath the support level at $175, the bears may be able to pave the way for a fall toward the support level at $166 over the coming few sessions.
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