Solana Under Siege: Bears Push Price Below Key Levels, Traders Eye $120 Support
Solana (SOL) is currently navigating a precarious market landscape, having failed to sustain its position above the critical $126 mark and subsequently correcting recent gains. The popular cryptocurrency is now trading below the $125 threshold, prompting a cautious stance among traders as fresh bearish momentum appears to be taking hold. Investors are keenly watching the $120 zone, where significant buying interest might emerge.
Price Action Signals Caution
SOL's recent performance saw it unable to breach the $130 resistance, triggering a notable downside correction reminiscent of Bitcoin and Ethereum's recent movements. This downturn led SOL to dip below $126 and $125, firmly establishing a short-term bearish zone. Further analysis reveals a move below the 50% Fibonacci retracement level of the upward wave from the $117 low to the $127 high, indicating a weakening bullish grip. A prominent bearish trend line with resistance at $124 is also forming on the hourly chart, adding to the immediate overhead pressure.
The Path Ahead: Support and Resistance Defined
The immediate future for Solana appears hinged on its ability to reclaim lost ground. Should SOL fail to climb back above the $125 resistance, further declines are anticipated. Initial support is identified near $122, with the first major support clustered around the $120 level, which also aligns with the 76.4% Fibonacci retracement of the recent swing high. A decisive break below $120 could pave the way for a deeper fall towards the $112 support zone, and a sustained close beneath this level might even send the price tumbling toward $105 in the near term. On the upside, key resistance levels stand at $125 and $128. A strong move above the $130 resistance zone would be required to trigger a more sustained upward trend, potentially pushing the price toward $135 and even $142. Technical indicators underscore the bearish sentiment, with the hourly MACD for SOL/USD showing increasing momentum in the bearish territory, and the Hourly Relative Strength Index (RSI) currently hovering below the 50 level, reinforcing the prevailing market caution.
