Solana rose towards $80 before the bears appeared. SOL price is now correcting gains, but the bulls could remain active near the USD 65 support.
- SOL price started a major rally above the $65 resistance before the appearance of bears against the US dollar.
- The price is now trading above $65 and the 100 simple moving average (4 hours).
- A major bullish trendline is forming with support around $65.00 on the 4-hour chart of the SOL/USD pair (Kraken data source).
- The pair could accelerate lower if there is a clear move below the $55.00 support.
Solana price starts downward correction
In recent days, Solana saw a big rally above the $60 level. SOL gained bullish momentum after breaking above $65, along with Bitcoin and Ethereum.
The bulls even pumped the price above the USD 72 level. A high was formed near $77.72 and the price recently experienced a downward correction. It traded below $72 and tested $70. The bears were able to push the price below the 23.6% Fib retracement level of the upward move from the $53.50 swing low to the $77.72 high.
SOL is still trading above $66 and the 100 simple moving average (4 hours). There is also a major bullish trendline forming with support around $65.00 on the 4-hour chart of the SOL/USD pair.
The trendline is near the 50% Fib retracement level of the upward move from the $53.50 swing low to the $77.72 high. On the upside, immediate resistance is around the $72.00 level. The first major resistance is around the $75.00 level.
Source: SOLUSD on TradingView.com
The main resistance is now near $78. A successful close above the $78 resistance could set the pace for a bigger rise. The next major resistance is near $82.50. Any further gains could send the price towards the USD 86.52 level.
Lose more in SOL?
If SOL fails to recover above the USD 72.00 resistance, the price could continue to decline. The initial downside support is near the $68.00 level.
The first major support is near the $65.00 level or the trendline, below which the price could test $62. If there is a close below the $62 support, the price could fall towards the $55 support in the near term.
Technical indicators
4-hour MACD – The MACD for SOL/USD is gaining speed in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major support levels – USD 65.00 and USD 62.00.
Major resistance levels – $72.00, $75.00 and $78.00.