Solana began a $24 downside correction against the US dollar. SOL price may start a fresh increase if it stays above the $21.50 support.
- SOL price is correcting lower from the $24 resistance against the US Dollar.
- The price is now trading below $23.50 and the 100 simple moving average (4 hours).
- There was a break above a major bearish trendline with resistance near USD 22.50 on the SOL/USD pair’s 4-hour chart (data source from Kraken).
- The pair could start a fresh increase if it stays above the USD 21.50 support.
Solana Price remains supported
Last week, Solana’s price formed a base above the $20.50 level. SOL started another increase and was able to clear the $21.50 resistance. There was a break above a major bearish trendline with resistance near USD 22.50 on the SOL/USD pair’s 4-hour chart.
However, the bears were active near the $24 resistance. A high is forming near $23.99 and the price is now correcting gains similar to Bitcoin and Ethereum.
SOL dropped below the $23.50 and $23.00 levels. There was a drop below the 50% Fib retracement level of the upward move from the $20.39 swing low to the $23.99 high. It is now trading below $23.50 and the 100 simple moving average (4 hours).
Source: SOLUSD at TradingView.com
On the upside, immediate resistance is near the $22.50 level. The next major resistance is near the $23 zone and the 100 simple moving average (4 hours). A close above the $23 level could again send the price towards the $24 resistance zone. More gains could send the price towards the $25 level.
Lose more in SOL?
If SOL fails to clear the $23 resistance, it could fall further. The first support on the downside is near the $21.75 level or the 61.8% Fib retracement level of the upward move from the $20.39 swing low to the $23.99 high.
The first major support is near the $21.50 level, below which the bears could gain strength. In the said case, the price might fall towards $20.40 support. The next major support is near the $20 level.
Technical indicators
4am MACD – The MACD for SOL/USD is gaining momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Main Support Levels – $21.75, $21.50 and $20.00.
Main resistance levels – $22.50, $23 and $24.