Solana failed to climb above the 5 resistance. SOL price started another decline, dropping nearly 10%, and now the bears aim for more downsides.
- SOL price remained in a bearish zone below the 2 resistance 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 extend losses if there is a close below the 2.50 support zone.
Solana Price Takes Hit
Solana price attempted a recovery wave above the 2 level. However, SOL bears defended upsides above the 5 level and the price started another decline like Bitcoin and Ethereum.
There was a drop below the 0 and 5 support levels. A low was formed at 3.24 and the price is currently trading in a downtrend. There is also a connecting bearish trend line forming with resistance at 0 on the hourly chart of the SOL/USD pair.
Solana is now trading below 0 and the 100-hourly simple moving average. If there is a recovery wave, the price might face resistance near the 6.50 level or the 23.6% Fib retracement level of the downward move from the 6.65 swing high to the 3.24 low.
Immediate resistance is near the 8.50 level. The next major resistance is near the 0.00 level or the trend line. It is close to the 50% Fib retracement level of the downward move from the 6.65 swing high to the 3.24 low.
A successful close above the 0.00 resistance could set the pace for another steady increase. The next key resistance is near 2.50. Any more gains might send the price toward the 6.50 level.
More Losses in SOL?
If SOL fails to recover above the 0.00 resistance, it could start another decline. Initial support on the downside is near the 3.50 level.
The first major support is near the 2.00 level, below which the price could test 0.00. If there is a close below the 0.00 support, the price could decline toward the 2.50 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 20 level.
Major Support Levels – 2.00, and 0.00.
Major Resistance Levels – 6.50, 0.00, and 2.50.