Solana is rebounding rapidly after the price dropped over 40% in the past 8 days. The price reached a major support level that has held 5 times in the past since March.
Yesterday, the price reached that level again at around $120 to $124, leading to a rejection and a close above the support.
SOL now appears to be rebounding well. It has increased by more than 13% today alone. Judging from past patterns, we could see an increase to around $190.
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The relative strength index (RSI) indicator is at 41, showing that the price still has significant room to run before it reaches an overbought level above 70.
The RSI metrics also support the rebound, with the price recovery starting at around 31—the same level it rebounded from in June.
The potential price increase will face some resistance. The 50-day, 100-day, and 200-day simple moving averages (SMA) are all closely above the price and could hinder further increases in the short and medium term.
Read Also: Why Is The Crypto Market Up Today?
Solana will also have to break above some key price levels where it has encountered obstructions in the past. A major level for potential resistance is between $155 and $157. Traders will need to watch for these key levels to break for hopes of continued price increases for Solana.
If the resistance holds, the price may have to retest the $123 zone again (which is the rectangular box in the chart). A break below this level could increase SOL selling pressure and trigger another major fall.
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