Solana (SOL) has experienced a fresh decline from its resistance level of $115, indicating bearish signs and potentially leading to a sharp decline towards the $68 support level. This article will analyze the current price movement of SOL and provide insights into its possible future trajectory.
Following an unsuccessful attempt to surpass the $115 resistance, Solana bulls faced challenges and started a fresh decline below the $105 support level. The price gradually decreased, falling below the significant $100 pivot level. Furthermore, it dropped below the 50% Fibonacci retracement level, which originated from the upward move between the $71 swing low and $108 high.
Multiple bearish signals emerged for Solana as it approached the $115 resistance. Similar to Bitcoin and Ethereum, SOL is now trading below $95 and the 100 simple moving average (4 hours). Additionally, a key bearish trend line is forming with resistance near $92 on the 4-hour chart of the SOL/USD pair. These indicators suggest a potential downward movement for SOL.
Resistance and Support Levels
If a fresh increase occurs, immediate resistance can be expected near the $92 level and the aforementioned trend line. Subsequently, the first major resistance lies around the $100 level or the 100 simple moving average (4 hours). However, for a significant rally, the price must successfully close above the $105 resistance level. In that case, the next key resistance stands at $115, potentially paving the way for further gains towards the $125 level.
On the other hand, should SOL fail to rally above the $92 resistance, it would likely continue its downward trajectory. Initial support can be found near the $80 level, followed by the first major support level near $72. A breach below this support could lead to a test of the $68 level. In the event of a close below the $68 support, the price might decline towards the $50 support level in the near term.
Technical Indicators
According to the 4-hour chart, the MACD indicator for SOL/USD suggests a gain in pace within the bearish zone. Simultaneously, the Relative Strength Index (RSI) sits below the 50 level, further reinforcing the bearish sentiment.
Solana’s price movement indicates bearish signs and a potential decline towards the $68 support level. Failure to overcome the resistance at $92 and the bearish trend line suggests further downward movement. However, if SOL manages to surpass the resistance levels at $92, $100, and $105, a major rally could potentially occur. Traders and investors are advised to conduct their own research and exercise caution while making investment decisions.