Solana declined again and tested the 0 support zone. SOL price is consolidating and might recover if it clears the 6 resistance zone.
- SOL price corrected lower and tested the 0 support zone against the US Dollar.
- The price is now trading below 8 and the 100-hourly simple moving average.
- There is a connecting bearish trend line forming with resistance at 5 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could clear the 6 resistance unless it fails to stay above 0.
Solana Price Eyes Recovery
Solana price remained in a short-term bearish zone like Bitcoin and Ethereum. SOL tested the 0 support zone and now consolidating losses. It is stuck below the 5 level.
There was a minor move above the 23.6% Fib retracement level of the downward move from the 0 swing high to the 1.50 low. Solana price is now trading below 6 and the 100-hourly simple moving average. Immediate resistance is near the 5 level.
There is also a connecting bearish trend line forming with resistance at 5 on the hourly chart of the SOL/USD pair. The next major resistance is near the 6 level. A successful close above the 6 resistance could set the pace for another major increase.
The next key resistance is near 8 or the 61.8% Fib retracement level of the downward move from the 0 swing high to the 1.50 low. Any more gains might send the price toward the 2 level.
More Losses in SOL?
If SOL fails to rally above the 6 resistance, it could start another decline. Initial support on the downside is near the 2 level.
The first major support is near the 0 level, below which the price could test 5. If there is a close below the 5 support, the price could decline toward the 0 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is losing pace in the bearish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – 2, and 0.
Major Resistance Levels – 6, 8, and 2.