Solana Struggles, Eyes Further Decline as Key Support Falters
Solana (SOL) has recently faced significant headwinds, failing to sustain critical price levels and signaling a potential for deeper corrections. The popular cryptocurrency is currently consolidating losses, with market participants closely monitoring crucial support and resistance zones amidst a prevailing bearish sentiment.
SOL Price Dips Further
Solana's price initiated a fresh downturn, unable to hold ground above the $145 threshold. Following this failure, SOL broke below key support levels at $138 and $135 against the US Dollar. The asset is now trading below $135 and significantly under its 100-hourly simple moving average, underscoring a strong bearish momentum. Technical analysis reveals a prominent bearish trend line with resistance forming near $140 on the hourly chart, derived from Kraken data. Despite a brief recovery wave pushing it above the 23.6% Fibonacci retracement level (from the $143 high to the $130 low), SOL struggles to reverse its downward trajectory.
Critical Levels to Watch
For Solana to mount a recovery, bulls must decisively defend the $132 or $130 support levels. On the upside, immediate resistance is found near $135, followed by a major hurdle at $136, which coincides with the 50% Fibonacci retracement level. A sustained move and close above the $140 resistance zone could pave the way for a rally towards $144 and potentially $150. However, if SOL fails to breach the $136 resistance, it risks extending its decline. Key downside support levels are identified at $132 and the crucial $130 mark. A break below $130 could accelerate losses, potentially driving the price towards $122, with a further decline to $115 if that support fails.
Technical Indicators Confirm Bearish Bias
The current market sentiment for Solana is largely reinforced by technical indicators. The Hourly Moving Average Convergence Divergence (MACD) for SOL/USD is actively gaining pace within the bearish zone, indicating increasing selling pressure. Concurrently, the Hourly Relative Strength Index (RSI) for SOL/USD remains positioned below the 50 level, further solidifying the bearish outlook. These indicators collectively suggest that Solana may continue to experience downward pressure unless a strong buying impetus emerges to challenge the overhead resistance levels.
