Key Takeaways:
– Solana price has dipped and is trading below the $172 support zone.
– It may struggle to surge above the $165 resistance zone.
– A further break might see SOL plummet to around $135.
Solana (SOL) Trimming Gains
Solana recently began a fresh decline following difficulties surmounting the $175 zone against the U.S. Dollar. The SOL price is presently below $170 and the 100-hourly simple moving average, sparking concerns of a broader market shift.
The asset is now forming a crucial bearish trendline. This trend places resistance at $162 on the hourly chart of the SOL/USD pair. However, a moderate bullish rebound might occur if the cryptocurrency maintains support levels of $155 and $150.
Solana Struggles at Resistance Zones
Solana initially faced hurdles clearing the $180 resistance level, triggering a decline like its counterparts Bitcoin and Ethereum. This descent led to a slip below the $175 and $172 support levels. Bearish traders exerted further pressure, plummeting the price below $165 and reaching the $155 support area.
Currently, Solana is trading below $162, consolidating its losses beneath the 23.6% Fibonacci retracement level of the drop from the $173 swing high to the $155 low. On the brighter side, if SOL manages to close above the $165 resistance zone, it may pave the way for a steady rise. The subsequent resistance level to watch would be $172. Surpassing this could potentially propel the price towards the $180 mark.
Is More Solana Slippage Imminent?
If Solana fails to eclipse the $165 resistance, it may continue on a downward trajectory. Initial support on the downside situates near the $155 level, followed by significant support around the $150 mark.
Should Solana break below the $150 barrier, it could spiral down towards the $135 zone. Even worse, a close below the $135 support might see the price retreat to the $124 support in the near term.
Analyzing Technical Indicators
Based on the Moving Average Convergence Divergence (MACD) for SOL/USD, the pace in the bearish zone is slowing down. Simultaneously, the Relative Strength Index (RSI) for SOL/USD is below 50, implying that sellers are dominating at the moment.
As it stands, the primary support levels for Solana are at $155 and $150 with major resistance at $162 and $165. Given both fundamental and technical factors, traders can expect a continued decline if the coin can’t shatter the resistance hurdles.
Conclusion
While Solana might be hitting a rough patch on its upward journey, it’s crucial to examine the broader market conditions. Many cryptocurrencies are known for their volatile nature and the ability to bounce back after significant plunges, and Solana is no exception. It remains crucial for investors and traders to keep a keen eye on these support and resistance levels as they navigate the unpredictable crypto market waters.