Solana Eyes Recovery After Testing $160 Support Zone: Key Resistance at $166

• The recent movements of Solana’s cryptocurrency show a decline, with its price testing the $160 support level.
• While SOL is currently consolidating, there is potential for recovery if it breaks through the $166 resistance area.
• A notable detail is the formation of a bearish trend line with resistance at $165, as observed on the hourly SOL/USD chart.

Solana (SOL) cryptocurrency is showing signs of consolidation after testing the $160 support zone, with potential recovery looming if it breaches the $166 resistance.

Solana Price Poised for Recovery

Solana’s price has been experiencing a downtrend similar to other major cryptocurrencies like Bitcoin and Ethereum. After testing the $160 support zone, SOL has started to consolidate its recent losses, currently hovering below the $165 mark.

The price saw a minor rebound above the 23.6% Fib retracement level from a downward movement of $170 to the $161.50 low. Currently, SOL is trading under the $166 level and below the 100-hourly simple moving average, with immediate resistance spotted around $165.

A connecting bearish trend line, indicating resistance at $165, is evident on the hourly chart of the SOL/USD pair. If the price manages to close above the $166 mark, it could set the stage for a significant upward movement.

Potential Upside for Solana

Should Solana successfully clear the $166 resistance level, the next major hurdle will be around $168, aligning with the 61.8% Fib retracement level from the recent drop between $170 and $161.50. Surpassing this resistance could propel the price towards the $172 level, indicating stronger bullish momentum.

Risk of Further Declines in SOL?

If SOL fails to overcome the $166 resistance, it might face further decline. Initial support on the downside can be found at the $162 level.

Should the $162 support fail to hold, the next critical support level would be $160. A close below the $160 mark could trigger a decline towards the $155 support level. Further drops might see the price reaching down to the $150 level in the short term.

Technical Indicators

Evaluating the technical indicators: the hourly MACD is losing its bearish momentum, and the RSI for SOL/USD remains below the 50 level, highlighting bearish pressure.

Major Support Levels – $162, and $160.

Major Resistance Levels – $166, $168, and $172.

Conclusion

In conclusion, Solana shows signs of consolidation with potential for recovery if it surpasses the $166 resistance level. However, failure to do so could lead to further declines, testing lower support levels at $160 and $155. Investors should keenly watch these levels for further market direction and potential trading opportunities.