Solana (SOL) Declines Again – Is This A Dip Worth Buying For Recovery?

[Redator]

Solana started a fresh decline from the $238 zone. SOL price is now consolidating losses below $225 and might decline further below $218.

• SOL price started a fresh decline below $232 and $230 against the US Dollar.
• The price is now trading below $225 and the 100-hourly simple moving average.
• There was a break below a key bullish trend line with support at $230 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could start another increase if the bulls defend $218 or $212.

Solana Price Dips Below Support

Solana price extended gains above $225 and $230, like Bitcoin and Ethereum. SOL even surpassed $235 before the bears appeared. A high was formed near $238 and the price dropped.

There was a move below $232. Besides, there was a break below a key bullish trend line with support at $230 on the hourly chart of the SOL/USD pair. The pair traded as low as $217.47 and is currently consolidating losses below the 23.6% Fib retracement level of the recent decline from the $237 swing high to the $217 low.

Solana is now trading below $225 and the 100-hourly simple moving average. If there is a recovery wave, the price could face resistance near the $222 level. The next major resistance is near the $228 level or the 50% Fib retracement level of the recent decline from the $237 swing high to the $217 low.

The main resistance could be $230. A successful close above the $230 resistance zone could set the pace for another steady increase. The next key resistance is $238. Any more gains might send the price toward the $245 level.

Another Drop In SOL?

If SOL fails to rise above the $230 resistance, it could continue to move down. Initial support on the downside is near the $218 zone. The first major support is near the $212 level.

A break below the $212 level might send the price toward the $200 support zone. If there is a close below the $200 support, the price could decline toward the $188 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 – $218 and $212.

Major Resistance Levels – $230 and $238.