Key Takeaways:
– Solana (SOL) retraced to the $128 support zone, initiating a consolidation phase against the U.S. Dollar.
– The price now trades below $135 and the 100-hourly moving average.
– Potential bullish momentum could emerge if SOL can clear the $132 resistance zone.
– SOL price could plunge towards the $120 support zone or lower if it fails to overcome the $132 resistance zone.
Over the last couple of days, Solana’s price has observed a significant decline, skidding through various support levels to touch the $128 support zone. However, it appears that SOL is setting up for a potential comeback as it consolidates its losses.
Solana’s Price Retreats to $128
From an impressive resistance zone around $140, Solana (SOL) initiated a noticeable cutback. It slipped below the support levels of $135 and $132, similar to popular cryptocurrencies like Bitcoin and Ethereum. Subsequently, SOL went on to test the $128 zone. It established a low at $128.85 and has been consolidating losses ever since.
Despite some minor recovery above the $130 level, Solana has remained below the $132 mark and the 100-hourly simple moving average. Moreover, a connecting bearish trend line has emerged with the resistance at $132 on the hourly chart of the SOL/USD pair.
Potential Bullish Outcomes for Solana
The resistance around $132 and $135 stand as key hurdle points for SOL. The $135 level correlates with the 50% Fib retracement level of the downward move from the $139.83 high to the $128.85 low. Successfully overcoming these resistance points would be a positive signal for bullish investors and could potentially trigger a further incremental increase.
Should SOL navigate past these resistances, the next notable resistance zone remains at the $140 mark. Breaking this resistance offers a possibility for Solana’s price to soar towards the $150 level.
Possible Downside for SOL
Failure of Solana to cross the $132 resistance could result in another decline. The immediate support on the downside is the $130 level, followed by the significant support at $128.
A plunge below $128 could potentially drive SOL towards the $120 support zone. If Solana fails to maintain above this level, it could embark on a swift decline towards the $110 support over the short term.
Reviewing the situation from a technical perspective, the hourly MACD for SOL/USD points to a decrease in the pace of bearish traction. Meanwhile, the hourly RSI (Relative Strength Index) for SOL/USD stands near the middle ground at the 50 level. The crucial support and resistance levels for SOL in the immediate future are $130/$128 and $132/$135, respectively.
The SOL price behavior would inform future valuation and overall dynamics in the cryptocurrency market. Therefore, investors will be closely watching for signals of either a solid recovery or further dwindling.