Solana started a downward correction below the $230 zone. SOL price is now recovering losses and facing hurdles around the $220 level.
- The SOL price started to rise again after testing the $204 zone against the US dollar.
- The price is now trading below $230 and the 100-hour moving average.
- A major bearish trendline is forming with resistance at $220 on the hourly chart of the SOL/USD pair (Kraken data source).
- The pair could start a new rise if the bulls cross the $220 zone.
Solana Price’s eyes are upside down
Solana price formed a support base and started a new increase from the $204 level, like Bitcoin and Ethereum. There was a decent rise above the USD 210 and USD 212 resistance levels.
There was a move above the 23.6% Fib retracement level of the downward move from the $243 swing high to the $203 low. However, the price is now facing many hurdles near USD 220. Solana is now trading above $218 and the 100-hour moving average.
On the upside, the price is facing resistance around the $220 level. There is also a major bearish trendline forming with resistance at $220 on the hourly chart of the SOL/USD pair.
The next major resistance is near the $224 level or the 50% Fib retracement level of the downward move from the $243 swing high to the $203 low. The key resistance could be at USD 228. A successful close above the $228 resistance level could set the pace for another steady rise. The next major resistance is $235. Any further gains could send the price towards the USD 250 level.
Another drop in the SOL?
If SOL fails to rise above the $220 resistance, it could trigger another decline. The initial downside support is near the USD 212 level. The first major support is near the $205 level.
A break below the USD 205 level could send the price towards the USD 200 zone. If there is a close below the $200 support, the price could fall towards the $188 support in the near term.
Technical indicators
Hourly MACD – The MACD for SOL/USD is gaining speed in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major support levels – USD 212 and USD 205.
Major resistance levels – $220 and $228.