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17 September, 2024

Solana Price (SOL) Consolidates: Will It Bounce Back?

17 September, 2024

Solana Price Consolidates: Will It Bounce Back?

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Solana (SOL) recently saw a pullback, testing the $128 support zone. The price is now consolidating its losses, and a potential surge above the $132 resistance could signal a fresh comeback.

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After pulling back from the $140 resistance zone, SOL dipped below the $135 and $132 support levels, briefly testing the $128 mark. A low was formed at $128.85, and the price is currently consolidating its losses. A slight rebound pushed the price above $130, even testing the 23.6% Fibonacci retracement level of the downward move from the $139.83 swing high to the $128.85 low.

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However, SOL is currently trading below $132 and the 100-hour simple moving average. A connecting bearish trend line with resistance at $132 is visible on the hourly chart of the SOL/USD pair (data source from Kraken). A break above this resistance level could ignite bullish momentum.

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Bullish Outlook

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If Solana successfully closes above the $132 and $135 resistance levels, it could pave the way for a sustained upward movement. The next major resistance sits around $140. Further gains could propel the price toward the $150 level.

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Bearish Scenario

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If SOL fails to break above the $132 resistance, a further decline might occur. Initial support is located near the $130 level. The first major support lies around $128. A breach below this level could drive the price toward the $120 zone. If the price closes below the $120 support, a further decline toward the $110 support level is possible in the short term.

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Technical Indicators

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Hourly MACD – The MACD for SOL/USD is losing momentum in the bearish zone.

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

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Key Levels

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  • Major Support Levels: $130, $128
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  • Major Resistance Levels: $132, $135
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Overall, SOL’s price is currently consolidating. While a break above $132 could trigger a bullish rally, a failure to do so might lead to further downside. Traders and investors should closely monitor these key levels and technical indicators to assess the short-term direction of SOL’s price.