Solana Battles for Stability: Crucial $112 Level in Focus
Solana (SOL) finds itself at a pivotal moment, having failed to sustain its position above the $125 mark and extending losses into a crucial consolidation phase below $120. The cryptocurrency's recent downturn has put it on the edge, with key support levels now in sharp focus to determine its immediate trajectory.
Solana's Recent Slide and Current Stance
Following a fresh decline that saw SOL fall below both $120 and $115, the asset is currently struggling to regain bullish momentum, trading beneath the 100-hourly simple moving average. A significant bearish trend line has emerged on the hourly chart, marking resistance near $116. This level, alongside a low formed at $112, highlights the immediate challenges facing Solana as it attempts to consolidate losses and potentially initiate a recovery wave. The price briefly recovered towards the 23.6% Fibonacci retracement level of its downward swing from a $128 high to the recent $112 low, indicating some buying interest at these lower levels.
Path to Recovery: Key Resistance Levels
For Solana to reverse its bearish trend, it must overcome immediate resistance at the $116 level. Beyond this, the next major hurdle lies near $120, coinciding with the 50% Fib retracement of the same downward move. A successful close above the critical $122 resistance zone could pave the way for a steady upward climb, potentially pushing the price towards $125 and even a more ambitious target of $132. Overcoming these resistance points is crucial for bulls to establish a stronger recovery.
Downside Risks and Critical Support
Conversely, a failure by SOL to break above the $116 resistance could trigger further downward movement. Initial support is anticipated around the $114 zone, with the primary major support level resting at $112. A decisive break below $112 would be a significant bearish signal, potentially driving the price further down to the $105 support zone. Should this level also fail to hold, Solana could see an extended decline towards $102 in the near term. Technical indicators reveal a bearish outlook, with the Hourly MACD losing pace in the bearish zone and the Hourly Relative Strength Index (RSI) positioned below the 50 level.
