Solana's Ascent Stalls: Price Retreats as Bearish Sentiment Emerges Solana (SOL) has experienced a notable setback, failing to maintain its bullish momentum above the $144 mark and initiating a significant downside correction. The cryptocurrency is currently grappling below the $140 threshold, with analysts anticipating further bids near the crucial $135 support zone as early signs of market fatigue become apparent.
Solana's Downturn and Key Price Levels
SOL's price trajectory took a sharp turn, embarking on a downside correction against the US Dollar after failing to breach the $148 resistance. This retreat saw Solana dip below key levels at $145 and $144, pushing it into a short-term bearish phase. A critical bullish trend line, offering support at $144 on the hourly chart, was also broken, signaling a shift in market sentiment. The move was accompanied by a drop below the 23.6% Fibonacci retracement level of its recent upward wave, which stretched from a $123 low to a $147 high.
Navigating Support and Resistance
Currently, Solana is trading above the $135 level and the 100-hourly simple moving average, which offers some immediate solace. However, it faces stiff resistance near $142. A more substantial hurdle lies at the $145 level, with the main resistance peaking at $148. Should SOL manage a decisive close above the $148 resistance, it could pave the way for a renewed upward trend, potentially targeting $155 and even $165. Conversely, the technical indicators paint a cautious picture, with the Hourly MACD showing bearish momentum and the Relative Strength Index (RSI) dipping below the 50-level, suggesting a weakening buying interest.
Outlook: Potential for Further Declines
The immediate future for Solana appears contingent on its ability to overcome the $145 resistance. A failure to do so could trigger additional declines. Key support levels to watch on the downside are near the $135 zone, which aligns with the 50% Fibonacci retracement level of the previous upward wave. A more significant support is identified near the $132 mark. Should the price fall below $132, it risks heading towards the $128 support zone. A breach of the $128 support could further accelerate losses, potentially driving Solana down to the $122 level in the near term. Investors are advised to closely monitor these critical support and resistance points for Solana's next significant price movement.
