In recent trading sessions, Solana has experienced a retracement, losing some of its earlier gains and dipping below the crucial $175 support zone. The SOL price is currently nearing the $165 support level, which could potentially serve as a springboard for recovery in the near future.
- Solana’s price initiated a downward trajectory after facing resistance near the $185 level against the US Dollar.
- The cryptocurrency is currently trading below $172 and the 100-hour simple moving average.
- A significant bearish trend line is forming, presenting resistance around $172 on the hourly SOL/USD chart (data from Kraken).
- The pair might embark on an upward movement if it remains above the $165 and $162 support levels.
Solana Price Holds Support
Solana’s price encountered difficulty in surpassing the $185 resistance, prompting a fresh decline, akin to the patterns observed in Bitcoin and Ethereum. The price fell beneath the $180 and $175 support levels as bearish momentum took hold.
The bears managed to drive the price below $172, testing the $165 support zone. A low point was established at $165, and the price is now in a phase of consolidating losses, positioned below the 23.6% Fibonacci retracement level of the downward movement from the $183 swing high to the $165 low.
Currently, Solana is trading below $172 and the 100-hour simple moving average. On the upside, resistance is anticipated around the $170 mark. Following this, the next significant resistance level is situated near $172. Additionally, a critical bearish trend line is forming, presenting resistance around $172 on the hourly SOL/USD chart.
The primary resistance level could be $175, aligning with the 50% Fibonacci retracement level of the downward move from the $183 swing high to the $165 low. A successful closure above the $175 resistance could pave the way for a more sustained increase. The subsequent key resistance level is positioned at $182, with further gains potentially propelling the price towards the $185 mark.
Potential for Further Losses in SOL?
Should Solana fail to breach the $170 resistance, it might continue its downward trajectory. The initial support on the downside is located near the $165 level, with the first major support at the $162 mark.
A breach below the $162 level could drive the price towards the $150 zone. If Solana closes below the $150 support, it could experience a decline towards the $135 support in the near term.
Technical Indicators
Hourly MACD: The MACD for SOL/USD is gaining momentum within the bearish zone, indicating potential downward pressure.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD is below the 50 level, suggesting bearish sentiment among traders.
Major Support Levels
$165 and $162.
Major Resistance Levels
$170 and $172.
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