Solana Up 7% in the last day with Anticipation for a $120 Upsurge- What to Watch Out For

• Solana (SOL) faces a critical juncture as it recently declined from $106, struggling to surpass key resistance levels.
• Bulls are actively defending near $92, aiming for a potential rally toward $120, while the $100 resistance remains a crucial battleground.

Solana (SOL) has recently encountered a critical juncture in its price action against the US Dollar, setting the stage for a potential bullish rally or a renewed descent. The cryptocurrency’s price initiated a fresh decline after encountering resistance at the $106 mark, mirroring the challenges faced by Bitcoin at $43,800.

Solana Price Faces Key Test

The decline saw SOL breach crucial support levels at $102 and $100, accompanied by the breaking of a key bullish trend line with support at $100 on the 4-hour chart of the SOL/USD pair, as per data sourced from Kraken. Despite these setbacks, the bulls demonstrated resilience near the $92 level, supported by the 100 simple moving average (4 hours). The current price hovers above $95, with attempts to initiate an upward trajectory.

The recent price action involved a retest of the $100 zone and the 50% Fibonacci retracement level of the downward move from the $106.41 swing high to the $92.95 low. As of now, SOL is trading above $95 and the 100 simple moving average (4 hours), eyeing the immediate resistance at $100.

The subsequent major hurdle rests at the $104 level or the 76.4% Fibonacci retracement level. A successful breach of the $104 resistance may pave the way for a substantial uptrend, with $112 being the next critical resistance. Should the momentum persist, there is potential for SOL to target the $120 level.

Key Levels to Watch

On the flip side, a failure to rally beyond the $100 resistance might trigger another downtrend. Initial support lies near $92 and the 100 simple moving average (4 hours). The $90 level serves as the first major support, and a breach below it could test the $85 mark. A close below $85 may expose the price to a further decline, potentially targeting the $78 support in the short term.

In conclusion, Solana’s price is at a pivotal juncture, with traders closely monitoring the $100 resistance level for clues about the cryptocurrency’s near-term direction. A successful breach could unleash bullish momentum, potentially propelling SOL towards the coveted $120 mark.