Key Takeaways:
– Solana’s price is approaching the $165 support after struggling near the $185 zone against the US Dollar.
– There is a key bearish trend line with resistance at $172 on the hourly chart of the SOL/USD pair.
– Solana could start an upward trend if it stays above $165 and $162 support levels.
– If SOL fails to rise above the $170 resistance, the price could descend towards the $150 zone.
Monitoring Solana’s Recent Decline
Solana (SOL) has seen a decrease in price recently, bobbing and weaving around its support levels. After facing struggles near the $185 zone, the currency plunged below the $175 mark. The current downturn mirrors the effects seen in both Bitcoin and Ethereum, communicating a sector-wide cooling-off period.
The bears had a victory as SOL plunged below the $175, $180, and even $172 marks before testing the $165 support zone. A potential bounce-back is anticipated as the crypto consolidates losses and aims to retain its current price point.
Battling Resistance: The Bull Scenario
Presently, Solana faces resistance around the $170 mark. If the crypto manages to ascend above this barrier, another resistance will be found near the $172 level. Traders are also closely monitoring a key bearish trend line—with resistance at $172 on the hourly chart of the SOL/USD pair.
A significant resistance that could alter the trajectory is upon reaching $175. A solid conclusion above this resistance level has the potential to initiate a steady increase, with the next key resistance at $182. Any further gains could propel SOL towards the $185 level—the previous high that proved a tough barrier to break.
Further Dips or Rising Bulls?
Should SOL fail in its attempt to surpass the $170 resistance, a continued decline seems a plausible outcome. The first port of call is the $165 support level. If Solana breaks this point, it foretells a tumble towards the $162 mark.
A break below the $162 support level could send SOL into a spiral, with $150 being the next significant psychological marker. If a close below the $150 level were to occur, it might set the stage for a further decline towards the $135 support level.
Technical Nudges
The technical indicators provide a perspective on the movements of SOL. The MACD (Moving Average Convergence Divergence) for SOL/USD is currently gaining momentum in the bearish territory. At the same time, the Relative Strength Index (RSI), which provides an overview of recent price evolutions to evaluate overbought or oversold conditions, positions SOL/USD as below the 50 level.
Support and Resistance Levels
Key support levels to keep an eye on are $165 and $162. At the same time, the major resistance levels are stationed at $170 and $172. These markers will present significant challenges or platforms for Solana’s price movement in the short term. It remains to be seen how this will play out. The stage is set, but will the bulls defend their ground or will the bears have their way?