Solana (SOL) Jumps But Smacks Into $120 Resistance Wall—Can It Break Through?

Solana started a fresh increase from the $100 support zone. SOL price is now consolidating and might struggle to clear the $120 resistance zone.

• SOL price started a fresh increase above the $105 and $112 levels against the US Dollar.
• The price is now trading above $105 and the 100-hourly simple moving average.
• There was a break above a connecting bearish trend line with resistance at $107 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The pair could start a fresh increase if it clears the $120 resistance zone.

Solana Price Gains Over 10%

Solana price formed a base above the $100 support and started a fresh increase, like Bitcoin and Ethereum. SOL gained pace for a move above the $110 and $112 resistance levels.

There was a break above a connecting bearish trend line with resistance at $107 on the hourly chart of the SOL/USD pair. The pair even spiked toward the $120 resistance zone. A high was formed at $120.10 and the price is now retreating lower.

There was a move below the 23.6% Fib retracement level of the upward move from the $101.24 swing low to the $120.10 high. Solana is now trading above $105 and the 100-hourly simple moving average.

On the upside, the price is facing resistance near the $118 level. The next major resistance is near the $120 level. The main resistance could be $125. A successful close above the $125 resistance zone could set the pace for another steady increase. The next key resistance is $132. Any more gains might send the price toward the $140 level.

Another Decline in SOL?

If SOL fails to rise above the $118 resistance, it could start another decline. Initial support on the downside is near the $112 zone. The first major support is near the $110 level and the 50% Fib retracement level of the upward move from the $101.24 swing low to the $120.10 high.

A break below the $110 level might send the price toward the $105 zone. If there is a close below the $105 support, the price could decline toward the $100 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is losing pace in the bullish zone.

Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.

Major Support Levels – $112 and $110.

Major Resistance Levels – $118 and $120.