Solana is moving lower from the USD 120 resistance. SOL price is showing some bearish signs and could fall sharply towards the $80 support.
- SOL price started a new decline after the USD 120 resistance against the US dollar.
- The price is now trading below $102 and the 100 simple moving average (4 hours).
- A major contracting triangle is forming with resistance near $102 on the 4-hour chart of the SOL/USD pair (Kraken data source).
- The pair could continue to decline towards the $85 support or even $80.
Solana Price faces a tough task
After a steady rise, Solana bulls struggled to break the USD 120 resistance. SOL price formed a short-term top and started a new decline below the USD 112 support, like Bitcoin and Ethereum.
There was a steady decline below the $105 level. The bears pushed the price below the USD 100 level. It tested the support at $91.50. A low is formed near USD 91.38, and the price is now consolidating losses. There is also a major contracting triangle forming with resistance around $102 on the 4-hour chart of the SOL/USD pair.
SOL is now trading below $102 and the 100 simple moving average (4 hours). Immediate resistance is near the $97.40 level. It is close to the 50% Fib retracement level of the downward move from the $103.39 swing high to the $91.38 low.
The first major resistance is near the $100 level or the 76.4% Fib retracement level of the downward move from the $103.39 swing high to the $91.38 low.
Source: SOLUSD on TradingView.com
The main resistance is now near $102. A successful close above the $102 resistance could set the pace for another major rally. The next major resistance is near USD 112. Any further gains could send the price towards the USD 120 level.
Lose more in SOL?
If SOL fails to break above the USD 102 resistance, the price could continue to decline. The initial downside support is near the $92.00 level.
The first major support is near the USD 85.20 level, below which the price could test USD 80. If there is a close below the USD 68 support, the price could fall towards the USD 74.50 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 85 and USD 80.
Major resistance levels – $97.40, $102 and $112.
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