Solana (SOL) Flashes Bearish Signs — Are Further Losses Ahead?
Solana started a fresh decline from the $188 zone. SOL price is now moving lower and might decline further below the $170 level.
- SOL price started a fresh decline from the $188 resistance zone against the US Dollar.
- The price is now trading below $180 and the 100-hourly simple moving average.
- There is a connecting bearish trend line forming with resistance at $176 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could start a fresh increase if it clears the $180 resistance zone.
Solana Price Dips Again
Solana price formed a base above the $170 support and started a fresh increase, like Bitcoin and Ethereum. SOL gained pace for a move above the $172 and $175 resistance levels.
The price tested the $188 resistance before there was a fresh drop to $170. A low was formed near $170 and the price recently attempted a fresh increase. The price cleared the $172 level. It surpassed the 23.6% Fib retracement level of the recent decline from the $188 swing high to the $170 low.
Solana is now trading below $180 and the 100-hourly simple moving average. There is also a connecting bearish trend line forming with resistance at $176 on the hourly chart of the SOL/USD pair.
On the upside, the price is facing resistance near the $176 level. The next major resistance is near the $180 level. The main resistance could be $185. A successful close above the $185 resistance zone could set the pace for another steady increase. The next key resistance is $192. Any more gains might send the price toward the $200 level.
Another Decline in SOL?
If SOL fails to rise above the $176 resistance, it could start another decline. Initial support on the downside is near the $172 zone. The first major support is near the $170 level.
A break below the $170 level might send the price toward the $165 zone and the trend line. If there is a close below the $165 support, the price could decline toward the $160 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $172 and $170.
Major Resistance Levels – $176 and $180.
