Solana (SOL) Dips Into the Red – Healthy Correction or Trend Reversal?
Solana started a fresh decline from the $200 zone. SOL price is down over 10% and might even struggle to stay above the $175 support zone.
- SOL price started a fresh decline below the $200 and $185 levels against the US Dollar.
- The price is now trading below $185 and the 100-hourly simple moving average.
- There is a connecting bearish trend line forming with resistance at $182 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could start a fresh increase if the bulls clear the $185 zone.
Solana Price Dips Further
Solana price struggled to clear the $205 resistance and started a fresh decline, underperforming Bitcoin and Ethereum . SOL declined below the $200 and $192 support levels.
It even dived below the $185 level. The recent low was formed at $174 and the price is now consolidating losses with a bearish angle below the 23.6% Fib retracement level of the downward move from the $205 swing high to the $174 swing low.
Solana is now trading below $185 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $182 level. There is also a connecting bearish trend line forming with resistance at $182 on the hourly chart of the SOL/USD pair.
The next major resistance is near the $185 level. The main resistance could be $190 and the 50% Fib retracement level of the downward move from the $205 swing high to the $174 swing low.
Source: SOLUSD on TradingView.comA successful close above the $190 resistance zone could set the pace for another steady increase. The next key resistance is $198. Any more gains might send the price toward the $205 level.
Another Decline in SOL?
If SOL fails to rise above the $185 resistance, it could start another decline. Initial support on the downside is near the $174 zone. The first major support is near the $170 level.
A break below the $170 level might send the price toward the $165 zone. If there is a close below the $165 support, the price could decline toward the $150 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $174 and $170.
Major Resistance Levels – $182 and $185.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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