Solana (SOL) Price Analysis: Rally Could Resume From $21.50

• Solana price started a decent increase above the $22.00 resistance against the US Dollar.
• The price is now trading below $23.50 and the 55 simple moving average (4 hours).
• There is a key declining channel forming with resistance near $23.40 on the 4-hour chart of the SOL/USD pair (data feed from Coinbase).
• The pair must stay above the $21.50 and $20.40 support levels to start another increase.

Solana price is trading above the $20 support against the US Dollar, like Bitcoin. SOL is correcting lower, but it might find bids near the $21.50 zone.

Solana (SOL) Price Analysis

SOL price remained in a bullish zone above the $20.00 and $21.50 support levels. The bulls were active near the $18.50 zone. A base was formed, and the price started a decent increase above the $22.50 level.

There was a clear move above the $23.50 level and the 55 simple moving average (4 hours). The pair even climbed above the $24 level. A high was formed near $24.80 before there was a downside correction. The price declined below the $23.50 support zone.

There was a minor move below the 23.6% Fib retracement level of the upward wave from the $18.73 swing low to the $24.80 high. It is now trading below $23.50 and the 55 simple moving average (4 hours).

On the downside, initial support is near the $21.50 level or the 50% Fib retracement level of the upward wave from the $18.73 swing low to the $24.80 high. The next major support is near the $20.40 level. A downside break below the $20.40 support level might spark a sharp decline.

In the stated case, the price may perhaps decline toward the $18.70 level. Any more losses might call for a test of $17.50. On the upside, immediate resistance is near the $22.50 level.

The next major resistance is near the $23.50 zone. There is also a key declining channel forming with resistance near $23.40 on the 4-hour chart of the SOL/USD pair. Any more gains might send SOL price toward the $25.00 resistance zone, above which the price could accelerate higher. The next major resistance sits near the $26.80 level.

Looking at the chart, Solana price is clearly trading below $24 and the 55 simple moving average (4 hours). Overall, the price must stay above the $21.50 and $20.40 support levels to start another increase.

Technical Indicators

4 hours MACD – The MACD is now losing momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.

Key Support Levels – $21.50 and $20.40.

Key Resistance Levels – $22.50, $23.50, and $25.00.