- Solana continues to struggle, failing to surpass the crucial $135 resistance mark, leading to a downward spiral.
- The cryptocurrency’s price is presently trading below $130 and is constrained by the 100-hourly simple moving average.
- Technical charts indicate a bearish trend, with resistance forming at $130 on the SOL/USD pair’s hourly chart (data sourced from Kraken).
- Further declines are anticipated if the cryptocurrency closes below the $122.50 support zone.
Solana price faces significant downward pressure, struggling to maintain support levels and hinting at potential further losses.
Solana Price Struggles
The Solana price attempted to breach the $132 mark, but resistance around the $135 level thwarted the recovery effort. Subsequently, SOL began to decline, mirroring the downward trends of Bitcoin and Ethereum.
Dropping below critical supports at $130 and $125, SOL fell to a low of $123.24. It is currently entrenched in a downtrend, further evidenced by a bearish trend line forming with resistance at $130 on the hourly chart of the SOL/USD pair.
Trading significantly below the $130 mark and the 100-hourly simple moving average, any potential recovery effort may encounter obstacles at the $126.50 level, aligned with the 23.6% Fib retracement level from the $136.65 swing high to the $123.24 low.
Short-term resistance lies around $128.50, with more substantial resistance at $130, coinciding with the trend line and the 50% Fib retracement level from the $136.65 swing high to the $123.24 low.
Successful closure above the $130 resistance could pave the way for a steadier rise, targeting $132.50 initially, and possibly aiming for the $136.50 mark.
Persistent Bearish Pressure
Should SOL fail to clear the $130 resistance, a renewed decline is likely. Initial support emerges around $123.50, followed by a major support level at $122.00. Breaching this could see the price testing the $120.00 level, with any further drops potentially targeting $112.50.
Indicators provide additional bearish signals; the hourly MACD for SOL/USD shows increasing momentum in the bearish zone. Correspondingly, the hourly RSI is below the 20 level, underscoring the sell-off pressure.
Conclusion
To conclude, Solana’s price faces an uphill battle to reclaim higher levels, hampered by strong resistance and persistent bearish trends. Investors should monitor critical support and resistance levels, as a break either way could determine the near-term movement of SOL. Maintaining close attention to technical indicators will provide further insight into potential market moves and strategies.
