Solana rose above the $65 resistance against the US dollar. SOL price is now correcting gains and could even fall below the $50 support.
- SOL price started a major rally above the $60 resistance before the appearance of bears against the US dollar.
- The price is now trading below $60 and the 100 simple moving average (4 hours).
- There was a break below a short-term ascending channel with support near $58.00 on the 4-hour chart of the SOL/USD pair (Kraken data source).
- The pair could accelerate below the $55.00 support zone in the coming sessions.
Solana price starts downward correction
In recent days, Solana saw a big rally above the $60 level. SOL gained bullish momentum after rising above $60 and outperforming Bitcoin and Ethereum.
The bulls even pumped the price above the USD 65 level. A high was formed around $68.16 and the price recently experienced a downward correction. It traded below $60 and tested $52. A low was formed near USD 51.23 and the price is now consolidating within a range.
There was a break below a short-term ascending channel with support near $58.00 on the 4-hour chart of the SOL/USD pair. SOL is now trading below $60 and the 100 simple moving average (4 hours).
On the upside, immediate resistance is around the $59.50 level. It is close to the 50% Fib retracement level of the downward move from the $68.16 swing high to the $51.23 low. The first major resistance is around the $60.00 level.
Source: SOLUSD on TradingView.com
Key resistance now lies near $62 or the 61.8% Fib retracement level of the downward move from the $68.16 swing high to the $51.23 low. A successful close above the $62.00 resistance could set the pace for a bigger rise. The next major resistance is near $68.50. Any further gains could send the price towards the USD 72.00 level.
Lose more in SOL?
If SOL fails to recover above the USD 60.00 resistance, the price could continue to decline. The initial downside support is near the $55.00 level.
The first major support is near the USD 51.20 level, below which the price could test USD 50. If there is a close below the $50 support, the price could fall towards the $45 support in the near term.
Technical indicators
4-hour MACD – The MACD for SOL/USD is losing pace in the bullish zone.
4-hour RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major support levels – USD 55.00 and USD 51.20.
Major resistance levels – $60.00, $62.00 and $68.50.