Solana's Price Plummets Below $200, Signaling Potential Further Decline
Solana (SOL) has once again stumbled, failing to maintain its position above the critical $200 threshold. Following a brief period of gains, the popular cryptocurrency has corrected downwards, breaching significant support levels and opening the door for a more pronounced bearish trend. Investors are now keenly watching key price points as SOL navigates this precarious market phase.
Solana's Rocky Rebound and Current Resistance
After stabilizing above the $192 zone, Solana initially showed signs of recovery, mirroring gains seen in Bitcoin and Ethereum. It successfully climbed past the $198 mark, briefly touching a high near $205, indicating a short-term positive momentum. However, this bullish run was short-lived, as SOL soon corrected its gains. The price has since slipped below the $200 resistance and the 23.6% Fib retracement level of its recent upward wave, suggesting a weakening hold on its recent advances. Critical resistance levels are now observed near $198, with a major hurdle at $200 and a more significant one at $205. A sustained break above $205 would be necessary to reignite a steady upward trend towards $212 and potentially $220.
Downside Risks and Key Support Levels
The breach of a bullish trend line with support at $198 on the hourly chart, coupled with trading below the 100-hourly simple moving average, paints a grim picture for Solana in the immediate future. Technical indicators like the Hourly MACD moving further into the bearish zone and the Hourly RSI dipping below the 50 level reinforce the downward pressure. Should SOL fail to recover above the $200 resistance, it risks further declines. Initial downside support is found near $192, which aligns with the 50% Fib retracement level of its recent rally from $177 to $205. A more crucial support lies at $188, and a fall below this could accelerate losses towards the $180 support zone. Sustained weakness below $180 might even push Solana down to the $166 support in the near term.
