Solana (SOL) Dips Below Support: Will Bulls Fight Back?
Solana (SOL) Slides Below Crucial Support: Will Bulls Retake Control?
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Solana (SOL) has shed its recent gains, slipping below the key $175 support level. The price is now approaching the $165 support zone and could potentially bounce back in the near term. This decline follows a failed attempt to break above the $185 resistance against the US Dollar. Currently, SOL is trading below $172, below the 100-hourly simple moving average. Adding to the bearish sentiment, a key bearish trend line has emerged on the hourly chart of the SOL/USD pair (data source from Kraken), providing resistance at $172.
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A positive turn for Solana could begin if it manages to stay above the critical $165 and $162 support levels. This could signal a potential upward movement.
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Solana Price Holds Key Support
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Solana’s recent decline mirrored the downward movement of Bitcoin and Ethereum, as it struggled to overcome the $185 resistance level. The price subsequently dropped below the $180 and $175 support levels. The bears intensified their pressure, pushing the price below $172 and testing the $165 support zone. A low was formed at $165, and the price is currently consolidating its losses below the 23.6% Fibonacci retracement level of the downward move from the $183 swing high to the $165 low.
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Technical Analysis
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Solana is currently trading below $172 and the 100-hourly simple moving average. On the upside, the price faces immediate resistance near the $170 level. The next significant resistance lies at the $172 level. The aforementioned bearish trend line on the hourly chart of the SOL/USD pair adds further resistance at $172.
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The main resistance could be found at $175, which coincides with the 50% Fibonacci retracement level of the downward move from the $183 swing high to the $165 low. A successful close above the $175 resistance level could set the stage for a renewed upward momentum. The next key resistance level is $182. Any further gains could push the price towards the $185 level.
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Potential for Further Losses in SOL
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If SOL fails to break above the $170 resistance level, the downward trend could continue. The initial support level on the downside is near the $165 level. The first major support is located at the $162 level. A breach below the $162 level might send the price towards the $150 zone. If the price closes below the $150 support, it could decline further towards the $135 support level in the near term.
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Technical Indicators
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Hourly MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
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Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
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Key Support and Resistance Levels
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Major Support Levels – $165 and $162.
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Major Resistance Levels – $170 and $172.