Solana Price Analysis: Will SOL Hold the $118 Support Level?

Source: CryptoNewsNet Original Title: Solana Price Forecast for Dec 31: SOL Must Hold the $118 Support, but Where Next? Original Link:

Current Price Action

Solana (SOL) is currently trading at $126.16, marking a 1.7% increase over the past 24 hours. The price has tested a low of $123.59 and reached a high of $126.57, with immediate resistance positioned above the $127 level.

If SOL breaks through this resistance, it could target higher levels around $130. On a 7-day basis, Solana has shown a 3.4% increase, indicating positive short-term momentum. However, the 14-day performance shows a 1.6% loss, and the 30-day data reveals a minimal decline of 0.5%. These mixed signals suggest that while there’s some short-term optimism, overall market sentiment remains cautious, preventing SOL from making a significant breakout.

Technical Analysis

The Solana chart reveals notable price action with key technical indicators:

Parabolic SAR: Currently positioned at $118.12, just below the price, indicating a bullish trend as the dots are placed under the candles, aligning with recent upward movement.

Support and Resistance Levels:

• Support: $118.12 - representing a significant low point where price needs to hold for a sustainable surge
• Resistance: $129.80 - marks a ceiling where price is currently encountering resistance
• Next Resistance: If price breaks above $130, the next potential target could be around $133

MACD Indicator: Currently showing bullish divergence, with the MACD line (blue) rising above the signal line (orange), signaling positive momentum. The histogram has shifted into green, indicating an increase in bullish momentum.

Key Level to Watch

The $118 support level is critical for Solana’s price action. This level has previously prevented further declines in SOL’s price and remains significant in maintaining upward momentum. For confirmation of the uptrend, the price needs to continue pushing above $129 to break the resistance level.

If the price fails to break this resistance, we may see a pullback toward the support region of $118.12. This key support must hold to validate sustained upward movement and prevent a deeper correction.