Solana began a recovery wave above the $120 resistance zone but is currently facing challenges as it attempts to regain momentum above the $132 resistance.
- SOL price started a fresh decline below the $150 and $140 levels against the US Dollar.
- The price is now trading below $130 and the 100-hourly simple moving average.
- A short-term rising channel is forming with support at $124 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could initiate a fresh increase if the bulls manage to clear the $132 zone.
Solana Price Faces Resistance
The price of Solana has struggled to clear the $155 resistance, leading to a notable decline, akin to the movements observed in Bitcoin and Ethereum. SOL saw a downturn below both the $140 and $132 support levels.
A significant drop occurred, pushing the price below $120, with a recent low established at $114 before a minor recovery kicked in. The price has since reclaimed positions above the $120 and $122 levels, surpassing the 23.6% Fibonacci retracement of the downward move from the recent $151 swing high to the $114 swing low.
Currently, Solana is trading below $130 and the 100-hourly simple moving average. Notably, a short-term rising channel with support at $124 is present on the hourly chart for the SOL/USD pair.
The price is facing immediate resistance near the $128 level, followed by the significant hurdle at the $130 level. The main resistance to watch is at $132, coinciding with the 50% Fibonacci retracement of the recent move from $151 to $114.
A successful close above the $132 resistance zone could pave the way for a steady ascent in price, targeting the next key resistance at $140, and ultimately moving towards the $150 level.
Potential for Another Decline in SOL?
If SOL struggles to rise above the $132 resistance, there’s a possibility of another decline. Initial support is anticipated near the $124 zone with further major support located at the $120 level.
A break below the $120 threshold might lead the price to navigate towards the $114 zone. Should the price close beneath the $114 support, a decline towards the $100 mark could be possible in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is losing momentum in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is hovering around the 50 level.
Major Support Levels – $124 and $120.
Major Resistance Levels – $128 and $132.
