Solana (SOL) Flashes Breakdown Signs: Will Support Hold?

Aayush Jindal

9 months ago

2 mins read

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Solana trimmed gains and declined below the $146 support. SOL price is consolidating and might aim for a fresh increase unless there is a break below $140.

SOL price started a fresh decline below the $146 zone against the US Dollar.
The price is now trading near $145 and the 100-hourly simple moving average.
There was a break below a key bullish trend line with support at $149 on the hourly chart of the SOL/USD pair (data source from Kraken).
The pair could start a fresh increase if it stays above the $140 support zone.

Solana Price Corrects Gains

Solana price climbed above the $145 and $146 levels before the bears appeared. SOL traded as high as $152 and recently started a downside correction like Bitcoin and Ethereum.

The price declined below the $150 and $146 support levels. There was a break below a key bullish trend line with support at $149 on the hourly chart of the SOL/USD pair. The pair slipped below the 23.6% Fib retracement level of the upward move from the $133 swing low to the $152 high.

Solana is now trading near $145 and the 100-hourly simple moving average. The bulls seem to be active above the $142 support and the 50% Fib retracement level of the upward move from the $133 swing low to the $152 high.

Solana Price — Source: SOLUSD on TradingView.com

On the upside, the price is facing resistance near the $146.50 level. The next major resistance is near the $150 level. The main resistance could be $152. A successful close above the $150 and $152 resistance levels could set the pace for another steady increase. The next key resistance is near $160. Any more gains might send the price toward the $172 level.

More Downsides in SOL?

If SOL fails to rise above the $146.50 resistance, it could start another decline. Initial support on the downside is near the $142 level. The first major support is near the $140 level.

A break below the $140 level might send the price toward the $132 zone. If there is a close below the $132 support, the price could decline toward the $120 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 – $140 and $142.

Major Resistance Levels – $150 and $152.

Aayush Jindal

Aayush Jindal, a luminary in the world of financial markets, whose expertise spans over 15 illustrious years in the realms of Forex and cryptocurrency trading. Renowned for his unparalleled proficiency in providing technical analysis, Aayush is a trusted advisor and senior market expert to investors worldwide, guiding them through the intricate landscapes of modern finance with his keen insights and astute chart analysis.

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