Solana is moving lower from the 0 resistance. SOL price is showing a few bearish signs and might decline sharply toward the support.
- SOL price started a fresh decline from the 0 resistance against the US Dollar.
- The price is now trading below 2 and the 100 simple moving average (4 hours).
- There is a key contracting triangle forming with resistance near 2 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
- The pair could continue to move down toward the support or even .
Solana Price Faces Uphill Task
After a steady increase, Solana bulls struggled to clear the 0 resistance. SOL price formed a short-term top and started a fresh decline below the 2 support, like Bitcoin and Ethereum.
There was a steady decline below the 5 level. The bears pushed the price below the 0 level. It tested the .50 support. A low is formed near .38, and the price is now consolidating losses. There is also a key contracting triangle forming with resistance near 2 on the 4-hour chart of the SOL/USD pair.
SOL is now trading below 2 and the 100 simple moving average (4 hours). Immediate resistance is near the .40 level. It is close to the 50% Fib retracement level of the downward move from the 3.39 swing high to the .38 low.
The first major resistance is near the 0 level or the 76.4% Fib retracement level of the downward move from the 3.39 swing high to the .38 low.
Source: SOLUSD on TradingView.com
The main resistance is now near 2. A successful close above the 2 resistance could set the pace for another major rally. The next key resistance is near 2. Any more gains might send the price toward the 0 level.
More Losses in SOL?
If SOL fails to rally above the 2 resistance, it could continue to move down. Initial support on the downside is near the .00 level.
The first major support is near the .20 level, below which the price could test . If there is a close below the support, the price could decline toward the .50 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 – , and .
Major Resistance Levels – .40, 2, and 2.