Solana failed to clear the $225 resistance and trimmed gains. SOL price is now below $200 and showing a few bearish signs.
- SOL price started a fresh decline after it failed to stay above $220 against the US Dollar.
- The price is now trading below $200 and the 100-hourly simple moving average.
- There is a connecting bearish trend line forming with resistance at $204 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 $205 zone.
Solana Price Dips Again
Solana price struggled to clear the $220-$225 zone and started a fresh decline, similar to Bitcoin and Ethereum. There was a move below the $212 and $205 support levels.
The price even dipped below the $200 handle, with a low formed at $196.73. Currently, the price is consolidating losses below the 23.6% Fibonacci retracement level of the downward move from the $223 swing high to the $196 low.
As it stands, Solana is trading below $200 and the 100-hourly simple moving average. Additionally, a bearish trend line is forming with resistance at $204 on the hourly chart of the SOL/USD pair. On the upside, the price faces resistance near this $204 level.
The next major resistance is near the $210 level or the 50% Fibonacci retracement level of the downward move from the $223 swing high to the $196 low. The crucial resistance level could be at $213. A successful close above this resistance level may set the stage for a steady upward movement, with subsequent resistance at $225. Any further gains might propel the price towards the $240 level.
Possibility of Another Decline in SOL?
If SOL fails to breach above the $205 resistance, it could face another decline. Initial support on the downside is located near the $196 level, with the first major support near $188.
A break below the $180 mark might lead the price to the $175 zone. Should there be a close below the $175 support, a decline towards the $162 support could occur in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is currently below the 50 level.
Major Support Levels – $196 and $188.
Major Resistance Levels – $205 and $210.
