Solana (SOL) has recently tested the $135 support level and is now experiencing a recovery. If the price manages to surpass the $144 resistance, it could gain further bullish momentum.
Currently, SOL is trading below $145 and the 100-hourly simple moving average. However, there has been a positive development as a key bearish trend line with resistance at $139 was broken on the hourly chart of the SOL/USD pair.
Previously, Solana price had climbed above the $146 and $148 levels, reaching as high as $152, but the bears took control, causing a decline similar to Bitcoin and Ethereum. The decline led to SOL falling below the $145 and $140 support levels, ultimately forming a low at $135.39.
Since then, the price has seen a recovery and has risen above the $140 level. The breakout has allowed Solana to surpass the 23.6% Fib retracement level of the previous downward move from the $152 swing high to the $135.39 low.
Moving forward, the key resistance levels to watch are $144, $146, and $150. A successful close above these levels could pave the way for another steady increase, with the next significant resistance level near $162 and the potential for further gains towards $175.
However, if SOL fails to surpass the $144 resistance, it may experience another decline. The initial support on the downside is around $138, with the first major support level at $134. A break below $135 could potentially lead the price towards the $132 zone, and if it closes below the $132 support, it might decline further towards the $120 support level in the short term.
From a technical standpoint, the hourly MACD for SOL/USD is gaining momentum in the bullish zone, indicating a positive outlook. Additionally, the hourly RSI (Relative Strength Index) is above the 50 level, further suggesting bullish potential.
In summary, Solana (SOL) has the potential to regain steam and experience a fresh rally if it breaks above the $144 resistance level. However, failure to do so could result in another decline with support levels at $138 and $135.