Solana (SOL) Sees Red—What’s Next for the Price?

Aayush Jindal

4 months ago

2 mins read

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Solana started a fresh decline from the $162 zone. SOL price is down over 15% and might struggle to recover above the $150 resistance.

SOL price started a fresh decline below the $162 and $150 levels against the US Dollar.
The price is now trading below $150 and the 100-hourly simple moving average.
There is a connecting bearish trend line forming with resistance at $144 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 $150 zone.

Solana Price Dips Sharply

Solana price struggled to clear the $185 resistance and started a fresh decline, underperforming Bitcoin and Ethereum. SOL declined below the $162 and $150 support levels.

It even dived below the $135 level. The recent low was formed at $131 and the price is now consolidating losses with a bearish angle. There was a minor recovery wave above the 23.6% Fib retracement level of the downward move from the $173 swing high to the $131 swing low.

Solana is now trading below $145 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $144 level. There is also a connecting bearish trend line forming with resistance at $144 on the hourly chart of the SOL/USD pair.

The next major resistance is near the $150 level. The main resistance could be $152 and the 50% Fib retracement level of the downward move from the $173 swing high to the $131 swing low.

Solana Price — Source: SOLUSD on TradingView.com

A successful close above the $152 resistance zone could set the pace for another steady increase. The next key resistance is $160. Any more gains might send the price toward the $165 level.

Another Decline in SOL?

If SOL fails to rise above the $145 resistance, it could start another decline. Initial support on the downside is near the $141 zone. The first major support is near the $136 level.

A break below the $136 level might send the price toward the $131 zone. If there is a close below the $125 support, the price could decline toward the $120 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is losing pace in the bearish zone.

Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Major Support Levels – $136 and $131.

Major Resistance Levels – $145 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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