Solana (SOL/USD) is showing signs of renewed bullish momentum as it climbs steadily toward the 0.5 Fibonacci retracement level at $182.57.
Currently trading at $177.21, SOL has maintained its position above a critical ascending trendline that has supported price action since early April, suggesting the long-term uptrend remains intact despite recent consolidation.
Long-Term Ascending Trendline
The 4-hour chart reveals a solid ascending trendline that has been supporting SOL’s price action since the April lows around $100. This trendline has acted as a reliable floor for Solana, with each test resulting in a bounce that propels the cryptocurrency to new local highs. The consistency of these bounces underscores the trendline’s significance as a major technical support that continues to attract buyers.
What makes the current price action particularly noteworthy is how Solana has rebounded from its mid-May pullback, finding strong support around the confluence of the ascending trendline and the 0 Fibonacci level at $160.15. The subsequent rally has pushed SOL above the 0.382 Fibonacci retracement level at $177.28, setting the stage for a potential challenge of higher resistance levels.
The moving averages on this timeframe are aligned in a bullish configuration, with the 100 SMA (blue line) positioned above the 200 SMA (red line). Both moving averages are sloping upward, confirming the strength of the prevailing uptrend. Price is trading comfortably above both indicators, with the 100 SMA around $160 likely to serve as dynamic support on any retracements.
The price structure shows a series of higher lows since early April, with the most recent low in mid-May finding support above the previous significant low, maintaining the classic uptrend pattern. This structure, combined with the bounce off the ascending trendline, reinforces the bullish narrative for Solana in the near term.
Renewed Buying Pressure
The momentum indicators are painting a constructive picture for Solana bulls. The stochastic oscillator has turned decisively higher after briefly dipping below the 50 level in mid-May. It’s now approaching the overbought zone, indicating strong buying pressure that could propel SOL toward higher resistance levels.
While the stochastic’s approach to overbought territory suggests some caution, the overall trend remains bullish as long as price maintains above the ascending trendline.
Meanwhile, the MACD indicator has executed a bullish crossover, with the blue line (MACD line) crossing above the orange signal line and the histogram bars expanding in positive territory. This MACD configuration typically signals increasing bullish momentum and often precedes extended price advances. The recent uptick in the histogram bars suggests that buying pressure is accelerating rather than diminishing.
From a Fibonacci perspective, having reclaimed the 0.382 retracement level at $177.28, the next targets for bulls are the 0.5 Fibonacci level at $182.57, followed by the 0.618 level at $187.87. These levels represent potential resistance zones where profit-taking could occur. The 0.5 Fibonacci level in particular often acts as a significant barrier in retracement scenarios.
