Solana rose above the $50 resistance level against the US dollar. SOL price consolidates gains above $55 and may extend its rally above $65.

• SOL price started a significant rally above the $50 resistance level against the US Dollar.
• The price is now trading above $55 and the 100 simple moving average (4-hours).
• There is a major contracting triangle forming with support near $51.00 on the 4-hours chart of the SOL/USD pair (data source from Kraken).
• The pair could resume its rise if it crosses the $60.00 resistance area.

Solana costs $75

In the last few days, Solana has seen a significant rise above the $40 level. SOL gained bullish momentum and cleared several hurdles near the $50 level, outperforming Bitcoin and Ethereum.

It even rose above the $55 and $60 levels. A new multi-week high was formed near $63.99 before the price began a slight downward correction. There was a move below the $60 level. The price fell below the 23.6% Fib retracement level of the upward move from the swing low at $38.05 to the swing high at $63.99.

SOL is now trading above $55 and the 100 simple moving average (4-hours). There is also a major contracting triangle forming with support near $51.00 on the 4-hours chart of the SOL/USD pair.

Source: SOLUSD on TradingView.com

On the upside, immediate resistance is near the $60.00 level. The first major resistance is near the $65.00 level. A successful close above the $65.00 resistance level could set the pace for a larger rally. The next major resistance is near $70.00. Any further gains could push the price towards the $75.00 level.

Are dips limited in SOL?

If SOL fails to recover above the $60.00 resistance level, it may initiate a downward correction. Initial support on the downside is near the $55.00 level.

The first major support is near the $51.00 level, the trend line area, and the 50% Fibonacci retracement level of the upward move from the swing low of $38.05 to the swing high of $63.99. If there is a close below the $51.00 support level, the price may fall towards the $45.00 support level in the near term.

Technical indicators

MACD on 4-hour chart – The MACD indicator for SOL/USD is gaining pace in the bullish zone.

4-hour RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.

Key Support Levels – $55.00 and $51.00.

Major resistance levels – $60.00, $65.00, and $75.00.