Solana began a recovery above $125 and is now consolidating, facing resistance near $128. After rising past $122 and $125 against the US Dollar, SOL is trading above $125 and the 100-hourly simple moving average. A key bearish trendline with resistance at $124 was broken on the hourly chart for SOL/USD. The price could extend its gains if it clears the $128 and $130 levels.
Solana held steady and initiated a recovery from $118, similar to Bitcoin and Ethereum. The price climbed above $122 and surpassed the 61.8% Fibonacci retracement level of the decline from the $132 high to the $117 low. Additionally, it broke above a bearish trendline with resistance at $124 on the hourly chart. Bulls pushed the price above $125, but bears have been active near $128.
SOL is now trading above $125 and the 100-hourly simple moving average. Immediate resistance lies near $128, which aligns with the 76.4% Fibonacci retracement level of the recent decline. The next major resistance is near $130, followed by a key hurdle at $135. A sustained close above $135 could pave the way for further gains toward $142 and potentially $145.
If SOL fails to break above $128, it could face another decline. Initial support is near $124.50, with major support at $122. A break below $122 might lead to a drop toward the $117 support zone. A close below $117 could see the price fall toward $105 in the near term.
Technical Indicators:
– Hourly MACD: Losing momentum in the bullish zone.
– Hourly RSI: Above 50.
– Major Support Levels: $125 and $122.
– Major Resistance Levels: $128 and $130.
Frequently Asked Questions
Frequently Asked Questions About Solanas Recovery
Beginner Questions
What does Solana has reached a recovery level mean
It means that after a period of significant challenges Solanas key metricssuch as price network activity and developer interesthave bounced back strongly signaling renewed health and confidence
Why is this recovery such a big deal
Solana faced serious doubts about its reliability and future This recovery shows it has addressed major issues regained user trust and is competing effectively again which is crucial for its longterm survival in the blockchain space
What caused Solanas problems in the first place
The main issues were network congestion and occasional full outages often caused by overwhelming demand from meme coin trading and bot activity This hurt its reputation for speed and reliability
How do I know Solana is actually recovered Look at key indicators like
Price Market Cap Sustained growth after a low point
Network Uptime Long periods without major outages
Developer Activity New projects building on it
Total Value Locked More money being used in its DeFi apps
Daily Active Users Consistent high user engagement
Is it safe to use Solana now
The network has implemented critical upgrades to improve stability While no blockchain is 100 immune to issues the consensus is that its core technology is now more robust and reliable for users and developers
Intermediate Practical Questions
What are the main benefits of using Solana after this recovery
You get a fast lowcost blockchain with a thriving ecosystem of apps that is now seen as more mature and stable reducing the risk of your transactions getting stuck
What upgrades did Solana implement to achieve this recovery
Key upgrades include
QUIC A new communication protocol to manage traffic flow and prevent spam
StakeWeighted QoS Prioritizes transactions from users who stake SOL reducing bot spam
Firedancer A new independent validator client to greatly enhance network resilience
Should I invest in SOL because of this recovery
This is not financial advice The recovery is a positive fundamental sign but you should always do