Solana (SOL) Decline Intensifies — Bears Tighten Grip, Recovery Looks Unlikely

[Ben Graham]

Solana started a fresh decline below the $180 zone. SOL price is now consolidating losses below $175 and might decline further below $165.

• SOL price started a fresh decline below $180 and $175 against the US Dollar.
• The price is now trading below $175 and the 100-hourly simple moving average.
• There is a key bearish trend line forming with resistance at $191 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could start a recovery wave if the bulls defend $165 or $162.

Solana Price Dips Further

Solana price failed to remain stable above $185 and started a fresh decline, like Bitcoin and Ethereum. SOL declined below the $182 and $180 support levels.

The price gained bearish momentum below $175. A low was formed at $163, 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 $163 low.

Solana is now trading below $175 and the 100-hourly simple moving average. On the upside, immediate resistance is near the $170 level. The next major resistance is near the $175 level or the 50% Fib retracement level of the downward move from the $188 swing high to the $163 low.

The main resistance could be $182. A successful close above the $182 resistance zone could set the pace for another steady increase. The next key resistance is $190. There is also a key bearish trend line forming with resistance at $191 on the hourly chart of the SOL/USD pair. Any more gains might send the price toward the $200 level.

Another Decline In SOL?

If SOL fails to rise above the $175 resistance, it could continue to move down. Initial support on the downside is near the $165 zone. The first major support is near the $162 level.

A break below the $162 level might send the price toward the $154 support zone. If there is a close below the $154 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 – $165 and $162.

Major Resistance Levels – $175 and $182.