Solana Faces Uphill Battle for Recovery Amidst Bearish Pressure Solana (SOL) is grappling with a significant challenge to initiate a recovery wave, having failed to sustain its position above the critical $140 mark. The cryptocurrency has experienced a fresh downturn, consolidating losses below $135, and now finds itself at a pivotal point where bearish forces are actively defending key resistance levels.
Recent Declines and Consolidation
After failing to settle above $140, Solana’s price embarked on a notable decline, mirroring the broader market sentiment seen in Bitcoin and Ethereum. This downturn pushed SOL below the $138 and $135 support levels, establishing a recent low at $124. While the price briefly recovered above the 23.6% Fibonacci retracement level of the $143 high to $124 low move, it continues to trade below $135 and its 100-hourly simple moving average, indicating persistent bearish momentum.
Key Resistance Levels and Potential Upside
For Solana to mount a significant recovery, it must overcome immediate resistance clustered around the $134 level, which aligns with the 50% Fib retracement of its recent decline. Further challenges lie at the $136 mark and, crucially, at a bearish trend line forming near $138 on the hourly chart. A successful close above this $138 resistance zone could pave the way for a more sustained ascent, potentially targeting the $144 and even the $150 psychological barrier. Technical indicators like the Hourly RSI are currently above 50, suggesting some underlying strength, though the MACD is losing pace in the bearish zone.
Downside Risks and Critical Support
Should Solana fail to break above the $133 resistance, the downside risks remain prominent, threatening further declines. Initial support is anticipated around $129, with a more substantial major support level at $125. A decisive break below this $125 threshold could trigger a sharper correction, potentially pushing the price towards the $120 support zone, and in the near term, even testing the $112 level if bearish pressure intensifies. Investors are advised to conduct their own research due to the inherent risks in cryptocurrency investments.
