Solana gained bearish momentum and was trading below $15 against the US Dollar. SOL price may now struggle to recover above the $15 and $17.50 resistance levels.
- SOL price is showing bearish signs below the USD 20 resistance against the US dollar.
- The price is now trading below $15 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance near USD 15.25 on the SOL/USD pair 4-hour chart (data source from Kraken).
- The pair could recover, but upsides could be limited above USD 17.50.
Solana Price Drops 20%
In the past few days, the price of Solana started falling again from well above $20. SOL gained bearish momentum and was able to trade below the USD 17.50 support.
The bears strengthened and pushed the price below the USD 15 support. The price is now showing bearish signals below USD 15, similar to Bitcoin and Ethereum. A low is formed near $13.00 and the price is now consolidating losses.
SOL is now trading below $15 and the 100 simple moving average (4 hours). A major bearish trendline is also forming with resistance close to $15.25 on the 4-hour chart of the SOL/USD pair. On the upside, immediate resistance is near the $15 level and trendline.
The trendline is close to the 23.6% Fib retracement level of the downward move from the $22.32 swing high to the $13.00 low. The next major resistance is near the $16 zone.
Source: SOLUSD at TradingView.com
The main resistance is now forming near the $17.50 level or the 50% Fib retracement level of the downward move from the $22.32 swing high to the $13.00 low. A close above the $17.50 level could again send the price to the $18.80 resistance zone. More winnings could send the price to the $20 level.
Lose more in SOL?
If SOL fails to clear the $17.50 resistance, it could fall further. The first support on the downside is near the $14.30 level.
The first major support is near the $13.00 level, below which the bears could gain strength. In the said case, the price might drop towards $12.00 support. The next major support is near the USD 10.50 level.
Technical indicators
4am MACD – The MACD for SOL/USD is losing pace in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $14.30 and $13.00.
Main resistance levels – $15.25, $17.50 and $18.80.