Solana (SOL) has recently experienced a significant decline in price, dropping to as low as $110. However, there are indications that the price is now starting to correct its losses and is facing resistance near the $160 mark.
Upon closer examination of the 4-hour chart of the SOL/USD pair, it is evident that there is a key bearish trend line forming with resistance at $160. This indicates that the price is currently trading below $160 and the 100 simple moving average. In order for Solana to continue its recovery, it will need to surpass both the $150 and $160 resistance levels.
Solana’s price began its downward trajectory as it dropped below the $180 and $160 support levels. This resulted in a significant decline of over 20%, with the price even falling below $150. However, the bulls managed to stop the freefall near $110, leading to a low of $115.04. The price is now showing signs of a recovery, similar to what Bitcoin and Ethereum are experiencing.
The immediate resistance for Solana is currently near the $150 level, with the next major resistance point at $160. A successful breach of the $160 resistance could potentially lead to a significant increase in price, with the next key resistance point at $182. On the other hand, failure to surpass the $160 resistance could trigger another decline, with initial support near $140 and major support at $132. A break below $125 could indicate a further decline towards the $115 support level.
The 4-hour MACD for SOL/USD is showing an increase in bullish momentum, while the 4-hour RSI remains below the 50 level. This indicates that there may still be some room for upward movement in the price, but caution should be exercised.
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