Solana (SOL) Nosedives — Sellers Tighten Grip, Recovery Attempts Fail
BY
Ben Graham
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Solana started a fresh decline from the $188 zone. SOL price is now consolidating losses below $180 and might decline further below $175.
Solana Price Dips Again
Solana price extended gains above $180 and $182, like Bitcoin and Ethereum. SOL even surpassed $188 before the bears appeared. A high was formed near $189 and the price dropped.
There was a move below $185 and $180. A low was formed at $176, and the price is now consolidating losses with a bearish angle below the 23.6% Fib retracement level of the downward move from the $188 swing high to the $176 low. Besides, there is a key bearish trend line forming with resistance at $192 on the hourly chart of the SOL/USD pair.
Solana is now trading below $185 and the 100-hourly simple moving average. On the upside, immediate resistance is near the $182 level or the 50% Fib retracement level of the downward move from the $188 swing high to the $176 low.
The next major resistance is near the $185 level. The main resistance could be $188. A successful close above the $188 resistance zone could set the pace for another steady increase. The next key resistance is $192 and the trend line. Any more gains might send the price toward the $200 level.
Downside Continuation In SOL?
If SOL fails to rise above the $188 resistance, it could continue to move down. Initial support on the downside is near the $175 zone. The first major support is near the $172 level.
A break below the $172 level might send the price toward the $165 support zone. If there is a close below the $165 support, the price could decline toward the $150 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $175 and $172.
Major Resistance Levels – $188 and $192.