Solana has entered a period of correction after initially setting its sights on the $230 price level. Currently, the SOL price is in a recovery phase after testing support at approximately $204 against the US dollar, but it is encountering resistance around the $220 threshold.
Following a new upward trend, Solana managed to break above key resistance levels of $210 and $212. This increase is part of a broader market movement seen alongside other cryptocurrencies. The price has also surpassed the 23.6% Fibonacci retracement from the decline that stemmed from a peak of $243 down to the recent low of $203. However, the $220 level remains a critical barrier to further gains, complicating the movement as it fluctuates above $218 and the 100-hour simple moving average.
At present, the most immediate resistance is identified at $220, coinciding with the formation of a bearish trend line on the hourly chart. Should the price successfully breach this barrier, attention will turn to the subsequent resistance levels at $224 and $228 — where the 50% Fibonacci retracement lies. A decisive close beyond $228 could pave the way for an upward trajectory, with the next key target around $235. Continued momentum could potentially push prices toward the $250 range.
Conversely, if Solana struggles to surpass the $220 resistance level, there are signs that it could face another decline. Immediate downside support is identified near $212, with stronger support at $205. A breach of the $205 level may trigger a further decline toward the $200 mark. If the price closes below $200, it might fall to around $188 in the short term. Current technical indicators reveal that the MACD is gaining momentum in the bullish zone, while the Relative Strength Index remains above the critical midpoint.
