Overview of Solana’s Price Action
Solana, the high-performance blockchain network, has initiated a fresh upward trajectory as it broke above the significant $200 support zone. This recent development has caught the attention of investors and traders alike, as Solana’s price dynamics echo similar patterns seen in Bitcoin and Ethereum. However, for Solana’s price to sustain its upward momentum, it is crucial for it to remain above the $200 mark.
- After stabilizing above the $188 threshold, Solana’s price began a fresh ascent against the US Dollar.
- The current trading price is below $212 and the 100-hourly simple moving average.
- Notably, there was a break beneath a crucial bullish trend line, with support positioned at $210 on the hourly chart of the SOL/USD pair (data sourced from Kraken).
- The potential for a renewed increase is contingent upon the bulls’ ability to defend the $200 support zone.
Solana Price Starts Downside Correction
Solana’s price recently established a support base, paving the way for a fresh surge beyond the $185 level. This movement is reminiscent of the upward trends seen in major cryptocurrencies like Bitcoin and Ethereum. The price witnessed robust growth, surpassing the $195 and $200 resistance levels, even clearing the $212 mark. A peak was reached at $225, but subsequent price corrections ensued, bringing it down below the $220 and $212 levels.
The decline included a dip beneath the 50% Fibonacci retracement level, calculated from the $195 swing low to the $225 high. Further, a break occurred below a key bullish trend line, with support at $210 on the hourly chart of the SOL/USD pair. Presently, Solana is trading below $212 and the 100-hourly simple moving average, approaching the pivotal support at $200 and the 76.4% Fib retracement level. On the upside, Solana faces resistance near the $208 level, with the next significant barrier at $212.
Potential for Continued Gains
The primary resistance is identified at $225. A conclusive closure above this resistance could pave the way for a steady increase, with the subsequent key resistance point being $242. Should the bullish momentum persist, Solana’s price might even aim for the $250 level, marking a significant milestone in its ongoing market journey.
Analyzing the Possibility of Further Losses in SOL
If Solana struggles to rise above the $212 resistance, it could experience further downward movement. The initial support on the downside is around the $202 level, with the first major support located near the $200 mark. A break beneath this level could drive the price toward the $195 zone. Should there be a closure below the $195 support, a further decline to the $185 support could be anticipated in the near term.
Technical Indicators
Hourly MACD
The MACD for SOL/USD is currently losing momentum in the bullish zone, suggesting caution for traders seeking upward momentum.
Hourly RSI (Relative Strength Index)
The RSI for SOL/USD is positioned below the 50 level, indicating a potential bearish sentiment in the market dynamics.
Key Support Levels
The major support levels to watch are $200 and $195, which are pivotal in maintaining the current price structure.
Key Resistance Levels
The major resistance levels include $208 and $212, which Solana needs to overcome to regain its upward momentum.
