Solana (SOL) price hit a 12-day high near $130.00 early Monday, before retreating from a multi-month resistance to $123.60 by press time. With this, the altcoin snaps its three-day winning streak heading into the U.S. trading session.
Notably, SOL’s upside break of a seven-week descending resistance line allowed the buyers to hit a multi-day high, but a downward-sloping resistance line from mid-September stopped further increase in the Solana price.
Furthermore, upbeat trading volume validated the altcoin’s latest rally, but bearish signals from the Directional Movement Index (DMI) momentum indicator and failure to cross the key resistance line keep the sellers hopeful.
As per Santiment, Solana’s daily trading volume jumped to a 10-day high of $4.18 billion, while the market capitalization (market cap) rose to the highest since December 22, to $70.46 billion as we write.
Alongside the technical details, the global financial market’s optimism due to the Ukraine-Russia peace deal and a sluggish U.S. dollar also favored the Solana price increase.
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Solana Price: Daily Chart Highlights $130.00
A clear upside break of a descending resistance line from early November allowed the Solana price to hit a multi-day high, but a failure to cross a three-month resistance, currently around $130.00, dragged the quote back below the short-term resistance-turned-resistance of $126.00.
Apart from the failure to cross the key resistance, bearish signals from the DMI also lure the SOL sellers. The DMI’s Average Directional Index (ADX, red) line tops the Downmove (D-, orange) line, and both lines are stronger than the Upmove (D+, blue) line, highlighting a bearish directional momentum.
As a result, the odds favoring SOL’s further downside toward a descending support line from early August, close to $114.00 at the latest, are stronger.
However, the year-end holiday mood might restrict the altcoin’s further weakness.
In a case where the Solana price drops below $117.00, the coin becomes vulnerable to slump towards the $100.00 threshold before targeting the yearly low of $95.33.
On the contrary, a three-month descending resistance line surrounding $130.00 guards the immediate upside of the Solana price.
Beyond that, a seven-week-old horizontal resistance area surrounding $146.00 and the $150.00 threshold can test the Solana price recovery.
Should SOL buyers manage to keep the reins past $150.00, the 200-day Exponential Moving Average (EMA) and multiple hurdles marked since October, respectively near $165.00 and $170.00, will be the final line of defense for the SOL bears.
Solana Price: Four-Hour Chart Portrays Pullback
On the four-hour (4H) chart, the Solana price fades the mid-month recovery from a five-week-old descending support line, reversing below the 200-bar EMA.
Notably, the DMI looks more positive on the four-hour chart, and hence an ascending support line from December 19, near $121.00, gains the intraday trader’s attention.
Following that, the aforementioned five-week support line, close to $114.00, and deeper levels discussed on the daily chart will be in the spotlight.
Alternatively, the 200-bar EMA hurdle of $132.00 guards the immediate upside of the Solana price.
After that, a seven-week-old horizontal resistance area surrounding $146.00 and the $170.00 support-turned-resistance from October 11 could test SOL bulls ahead of the daily chart’s higher levels.
Above all, a clear upside break of $170.00 could restore the previous bullish bias surrounding the altcoin, which can target the daily chart’s higher levels.
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