Solana (SOL) Loses Its Footing, Setting the Stage for Another Dive

[Ben Graham]

Solana failed to settle above $145 and nosedived. SOL price is now consolidating losses below $135 and might decline further below $130.

• SOL price started a fresh decline below $138 and $135 against the US Dollar.
• The price is now trading below $135 and the 100-hourly simple moving average.
• There is a key bearish trend line forming with resistance at $140 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could start a recovery wave if the bulls defend $132 or $130.

Solana Price Dips Again

Solana price failed to remain stable above $142 and started a fresh decline, like Bitcoin and Ethereum. SOL declined below the $140 and $138 support levels.

The price gained bearish momentum below $135. A low was formed at $130, and the price is now consolidating losses. The price recovered a few points and climbed above the 23.6% Fib retracement level of the downward move from the $143 swing high to the $130 low.

Solana is now trading below $135 and the 100-hourly simple moving average. On the upside, immediate resistance is near the $135 level. The next major resistance is near the $136 level or the 50% Fib retracement level of the downward move from the $143 swing high to the $130 low.

The main resistance could be $140. There is also a key bearish trend line forming with resistance at $140 on the hourly chart of the SOL/USD pair. A successful close above the $140 resistance zone could set the pace for another steady increase. The next key resistance is $144. Any more gains might send the price toward the $150 level.

Another Decline In SOL?

If SOL fails to rise above the $136 resistance, it could continue to move down. Initial support on the downside is near the $132 zone. The first major support is near the $130 level.

A break below the $130 level might send the price toward the $122 support zone. If there is a close below the $122 support, the price could decline toward the $115 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 – $132 and $130.

Major Resistance Levels – $136 and $140.