Solana started a fresh decline below the $132 support zone. SOL price is now consolidating and might struggle to recover above the $126 resistance.
- SOL price started a recovery wave from the $122 support zone against the US Dollar.
- The price is now trading below $130 and the 100-hourly simple moving average.
- There is a key rising channel forming with support at $124 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 $126 zone.
Solana Price Faces Resistance
Solana price has recently experienced a fresh decline, dropping below the $135 and $132 levels, much like other major cryptocurrencies such as Bitcoin and Ethereum. The asset even dipped below the crucial $125 support level before buyers stepped in.
A low was established at $122.64, followed by a consolidation phase. Following this, SOL noted a minor recovery beyond the $125 mark and tested the 23.6% Fibonacci retracement level of the downward trend from the $140 swing high to the recent low of $122.
Currently, Solana is trading below the $126 threshold and the 100-hourly simple moving average. Additionally, a significant rising channel is forming on the hourly chart, with support set at $124 for the SOL/USD pair.
On the upside, $126 has emerged as a critical level of resistance. Should momentum build, the next notable resistance point lies around $128, while crucial resistance may appear at $132 or the 50% Fibonacci retracement level of the recent decline from $140 to $122.
A successful break and close above the $132 resistance could pave the way for a more sustained upward movement, with the next significant resistance being at $136. Continued bullish sentiment might drive prices toward the $142 level.
Another Decline in SOL?
However, should SOL fail to break above the $128 resistance, there is potential for another downward trend. Initial downside support lies near the $124 level, while the primary support is around $122.
A breach below the $122 level could lead to prices targeting the $115 zone. Should the situation worsen, a close below the $115 support could see SOL further decline towards the $102 mark in the near future.
Technical Indicators
Hourly MACD – The MACD for SOL/USD indicates a loss of momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for SOL/USD remains above the 50 level, indicating a potential for upward movements.
Major Support Levels – $124 and $122.
Major Resistance Levels – $128 and $132.
