Solana attempted a recovery wave above the 0 level. SOL price is now struggling to clear the 0 and 0 resistance levels.
- SOL price recovered higher and tested the 0 resistance against the US Dollar.
- The price is now trading below 0 and the 100 simple moving average (4 hours).
- There is a key bullish trend line forming with support at 6 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
- The pair could start another decline if it stays below 0 and 0 for a long time.
Solana Price Faces Resistance
Solana price started a major decline below the 0 and 0 support levels. SOL tested the 5 zone and recently started an upside correction, like Bitcoin and Ethereum.
There was a decent increase above the 0 and 0 levels. The price climbed above the 23.6% Fib retracement level of the downward wave from the 5 swing high to the 5 low. It even spiked above the 5 zone and the 100 simple moving average (4 hours).
However, the bears are active near the 0 zone and the 50% Fib retracement level of the downward wave from the 5 swing high to the 5 low. The price struggled and corrected gains.
Source: SOLUSD on TradingView.com
Solana is now trading below 0 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support at 6 on the 4-hour chart of the SOL/USD pair. Immediate resistance is near the 5 level. The next major resistance is near the 0 level. A successful close above the 0 resistance could set the pace for another major increase. The next key resistance is near 0. Any more gains might send the price toward the 8 level.
Another Decline in SOL?
If SOL fails to rally above the 0 resistance, it could start another decline. Initial support on the downside is near the 5 level and the trend line.
The first major support is near the 2 level, below which the price could test 0. If there is a close below the 0 support, the price could decline toward the 0 support in the near term.
Technical Indicators
4-Hours MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – 6, and 2.
Major Resistance Levels – 5, 0, and 0.