Solana (SOL) is facing significant downward pressure, struggling to hold key support levels and signaling a potential deeper correction in the near term. The cryptocurrency failed to stabilize above the $90 mark, mirroring trends seen in Bitcoin and Ethereum, and has since extended its losses, consolidating below $85.
Solana's Struggle Below Key Thresholds
The SOL price initiated a fresh decline, falling below both the $88 and $85 levels against the US Dollar. It is currently trading under $85 and the 100-hourly simple moving average, indicating a bearish sentiment in the market. A notable bearish trend line is forming on the hourly chart, with strong resistance identified around $85.50. Despite these setbacks, there remains a slim possibility for a recovery wave if bulls manage to defend the crucial support zones at $82 or $80.
Critical Resistance and Support Levels
Following a low formed at $82.92, Solana is attempting to consolidate losses, but remains below the 23.6% Fibonacci retracement level of its recent move from a $90.75 swing high to the $82.92 low. Immediate resistance for SOL is situated near $85, reinforced by the aforementioned bearish trend line at $85.50. Should the price attempt a rebound, the next major resistance lies at $86.80, which aligns with the 50% Fib retracement level. A successful close above the primary resistance at $88 could pave the way for a steady increase towards the $90 and potentially $92 levels. Conversely, continued weakness could see initial support at $82.80, with a major support level at $82. A break below $82 would likely push the price further down to the $80 zone, and potentially to $76 in the near term. Technical indicators also support the bearish outlook, with the Hourly MACD gaining momentum in the bearish zone and the Hourly Relative Strength Index (RSI) positioned below the 50 level, suggesting a lack of buying strength. Investors are advised to monitor the $82 and $80 support levels closely for any signs of a potential bounce or further decline.
