Solana extended losses below the 0 support zone. SOL price is consolidating and might recover if it clears the 2.50 resistance zone.
- SOL price declined further and even traded below 0 against the US Dollar.
- The price is now trading below 0 and the 100-hourly simple moving average.
- There is a connecting bearish trend line forming with resistance at 0 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could clear the 2.50 resistance to start a short-term recovery wave.
Solana Price Eyes Recovery
Solana price remained in a short-term bearish zone like Bitcoin and Ethereum. SOL extended losses below the 0 support zone and is now consolidating losses. It is stuck below the 0 level.
There was a minor move above the 23.6% Fib retracement level of the downward move from the 3.25 swing high to the 5.03 low. Solana price is now trading below 5 and the 100-hourly simple moving average. Immediate resistance is near the 0 level.
There is also a connecting bearish trend line forming with resistance at 0 on the hourly chart of the SOL/USD pair. The next major resistance is near the 2.50 level. A successful close above the 2.50 resistance could set the pace for another major increase.
The next key resistance is near 7 or the 61.8% Fib retracement level of the downward move from the 3.25 swing high to the 5.03 low. Any more gains might send the price toward the 5 level.
More Losses in SOL?
If SOL fails to rally above the 2.50 resistance, it could start another decline. Initial support on the downside is near the 5 level.
The first major support is near the 2 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 – 5, and 2.
Major Resistance Levels – 2.50, 7, and 5.