The price of Solana (SOL) has broken above long-term resistance and could rise to $40 in the future.
Long-term resistance
SOL has been trading below a descending resistance line since August 2022. The line has rejected the price twice (red arrows), most recently on February 23.
The rejection has started to trend downward, but a positive sign is that the bulls have successfully defended the Fib 0.5-0.618 support zone ($15.1-$17.4), which is often the end of a correction. This suggests that SOL has formed a bottom and a new uptrend will follow.
Indeed, the price has rebounded since then and is now breaking above the resistance line. If successful, the price could rise to the next resistance level at $39.
The RSI indicator supports this possibility as it breaks above the bearish divergence line and is sloping upwards.
Daily outlook
The daily chart shows that SOL has indeed broken above the descending resistance line with a large bullish candlestick. It is supported by high trading volume, making the breakout valid.
Currently, the price is breaking above a small resistance zone at $24. If successful, the price could rise to the next target at $27.
Being rejected at this level would cause the SOL price to return to the descending resistance line before attempting another breakout.
The daily RSI is sloping upwards and is close to the oversold zone, supporting the possibility of a successful breakout.
Conclusion
The most likely prospect shows that SOL’s price will continue to rise to the resistance level at $27 and higher to $39.
This outlook would be invalidated if the price falls below the resistance line around $21. If so, it could fall back to the Fib 0.5-0.618 support zone again.
Disclaimer: Please note that this article is for informational purposes only and should not be taken as investment advice. As an investor, it is important to do your own research before making any decisions. We are not responsible for any investment decisions you make based on this information. Not Financial Advice.
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