Solana made an unsuccessful attempt to surpass the $225 resistance level and has since experienced a reduction in gains. Currently, the SOL price has dropped below $200 and is displaying some bearish indicators.
- Following its failure to maintain a position above $220 against the US Dollar, SOL price has initiated a new downtrend.
- The price is currently trading below $200 and the 100-hourly simple moving average.
- On the hourly chart of the SOL/USD pair (data sourced from Kraken), a bearish trend line is taking shape with resistance at $204.
- A potential upsurge could occur if the bulls successfully surpass the $205 zone.
Solana Price Experiences Decline Once Again
Solana’s price encountered difficulties in breaking through the $220-$225 region, leading to a fresh decline, similar to what occurred with Bitcoin and Ethereum. The price dipped below key support levels at $212 and $205.
Subsequently, the price fell below the $200 mark, reaching a low of $196.73. Currently, the price is consolidating losses below the 23.6% Fib retracement level from the peak at $223 to the low at $196.
Trading below $200 and the 100-hourly simple moving average, Solana is facing a bearish trend line with resistance at $204 on its hourly chart. Resistance is also observed near the $204 level.
The next significant resistance levels are around $210 and $213, representing the 50% Fib retracement level. If the price manages to close above $213, further gains could lead to a rise toward $225 and potentially even $240.
Potential Further Decline for SOL
If SOL fails to surpass the $205 resistance, a new downtrend may ensue. Initial support is likely around $196, followed by more substantial support near $188.
A breach of the $180 level could result in a downward movement towards $175. A conclusive break below $175 might see the price decline towards the $162 support level in the short term.
Technical Indicators
The MACD for SOL/USD is currently showing bearish momentum on the hourly chart.
With the RSI for SOL/USD below the 50 level, a bearish trend is indicated.
Key Support Levels – $196 and $188.
Key Resistance Levels – $205 and $210.
