Solana (SOL) is currently undergoing a significant downturn, with traders bracing for further losses as the cryptocurrency struggles to reclaim key price levels. Following a sharp decline from its $232 peak, SOL has entered a distinct bearish phase, signaling potential drops towards the critical $180 support zone.
Solana's Steep Decline and Immediate Outlook
The Solana price trajectory has taken a steep dive, failing to hold above the $232 mark and mirroring recent bearish movements seen in other major cryptocurrencies like Bitcoin and Ethereum. SOL rapidly traded below the $220 and $212 support levels, breaching the crucial $200 threshold and the 100-hourly simple moving average. A temporary low was established at $191, and the asset is now consolidating its losses beneath the 23.6% Fibonacci retracement level of the $242 swing high to the $191 low. Any attempts at recovery are expected to face strong resistance around the $200 level, followed by a key bearish trend line forming at $204 on the hourly chart. A successful close above the $215 resistance, which aligns with the 50% Fib retracement, would be vital for any sustained upward movement, potentially targeting $220 and then $232.
Looming Support and Bearish Indicators
Should Solana fail to overcome the $204 resistance, its downward momentum is likely to persist. Immediate downside support is anticipated around the $192 zone, with a more substantial major support level residing near $188. A decisive break below this $188 mark could precipitate a further decline towards the $180 support zone. If the price closes below $180, a deeper correction towards the $174 support in the near term becomes a distinct possibility. Technically, the hourly MACD is showing increased bearish momentum, while the Relative Strength Index (RSI) for SOL/USD remains below the 50 level, reinforcing the current bearish sentiment among traders.
