Solana (SOL) Fights to Hold $120—Is the Next Move Lower?

[Ben Graham]

Solana failed to settle above $132 and nosedived. SOL price is now consolidating losses below $130 and might decline further below $120.

• SOL price started a fresh decline below $130 and $128 against the US Dollar.
• The price is now trading below $128 and the 100-hourly simple moving average.
• There is a key bearish trend line forming with resistance at $131 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could start a recovery wave if the bulls defend $122 or $120.

Solana Price Dips Again

Solana price failed to remain stable above $132 and started a fresh decline, like Bitcoin and Ethereum. SOL declined below the $130 and $128 support levels.

The price gained bearish momentum below $126. A low was formed at $121, and the price is now consolidating losses. The price recovered a few points and tested the 23.6% Fib retracement level of the downward move from the $134 swing high to the $121 low.

Solana is now trading below $128 and the 100-hourly simple moving average. On the upside, immediate resistance is near the $125 level. The next major resistance is near the $128 level or the 50% Fib retracement level of the downward move from the $134 swing high to the $121 low.

The main resistance could be $130. There is also a key bearish trend line forming with resistance at $131 on the hourly chart of the SOL/USD pair. A successful close above the $132 resistance zone could set the pace for another steady increase. The next key resistance is $140. Any more gains might send the price toward the $145 level.

Another Decline In SOL?

If SOL fails to rise above the $128 resistance, it could continue to move down. Initial support on the downside is near the $122 zone. The first major support is near the $120 level.

A break below the $120 level might send the price toward the $112 support zone. If there is a close below the $112 support, the price could decline toward the $105 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 – $122 and $120.

Major Resistance Levels – $128 and $131.