Solana's Price Plummets: Is a Rebound on the Horizon? Solana (SOL) has recently experienced a significant downturn, initiating a fresh decline from the $238 resistance zone. Currently, SOL is consolidating losses below the $225 mark, with indications pointing towards a potential further dip below $218 if current trends persist. This price movement echoes broader market shifts seen in other major cryptocurrencies.
Solana Price Dips Below Key Support Levels
Following a period of gains that saw Solana push above $225 and even $230, similar to positive movements observed in Bitcoin and Ethereum, the cryptocurrency hit a high near $238 before encountering strong bearish pressure. This resulted in a notable drop below $232, and critically, a key bullish trend line that offered support at $230 on the hourly chart for the SOL/USD pair was breached. The price plummeted to a low of $217.47 and is now struggling below both $225 and the 100-hourly simple moving average. Technical analysis reveals that SOL is consolidating losses below the 23.6% Fibonacci retracement level of its recent decline. Should a recovery wave emerge, Solana faces immediate resistance around the $222 level. The next significant hurdle lies near $228, coinciding with the 50% Fibonacci retracement level of the recent downward swing from the $237 high to the $217 low. A successful breakthrough and sustained close above the crucial $230 resistance zone could pave the way for a steady upward climb, potentially pushing the price towards $238 and even a more optimistic $245 level.
Potential for Further Downside
However, if Solana fails to gather sufficient momentum to overcome the $230 resistance, it could signal a continuation of the downward trend. Initial support on the downside is anticipated near the $218 zone, with the first major support level identified at $212. A decisive break below this $212 mark could send Solana's price tumbling towards the significant $200 support area. Should the price close below $200, a near-term decline towards the $188 support level becomes a distinct possibility. Technical indicators corroborate the cautious outlook, with the Hourly MACD for SOL/USD showing bearish momentum. The Hourly Relative Strength Index (RSI) is also positioned below the 50 level, indicating a lack of buying strength. Investors are advised to closely monitor these key support levels at $218 and $212, and resistance levels at $230 and $238, as Solana navigates its current volatile period.
