Solana cut gains to trade below the $175 support zone. SOL price is now approaching the USD 165 support and could bounce back in the near term.
- The SOL price started falling again after struggling against the US dollar near the $185 zone.
- The price is now trading below $172 and the 100-hour moving average.
- A major bearish trendline is forming with resistance at $172 on the hourly chart of the SOL/USD pair (Kraken data source).
- The pair could start a decent upward move if it remains above the $165 and $162 support levels.
Solana Price retains support
Solana price struggled to clear the USD 185 resistance and started a new decline, just like Bitcoin and Ethereum. There was a decline below the USD 180 and USD 175 support levels.
The bears even pushed the price below USD 172 and tested the USD 165 support zone. A low was formed at $165 and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $183 swing high to the $165 low.
Solana is now trading below $172 and the 100-hour moving average. On the upside, the price is facing resistance around the $170 level. The next major resistance is around the $172 level. There is also a major bearish trendline forming with resistance at $172 on the hourly chart of the SOL/USD pair.
The key resistance could be $175 or the 50% Fib retracement level of the downward move from the $183 swing high to the $165 low. A successful close above the $175 resistance level could set the pace for another steady rise. The next major resistance is $182. Any further gains could send the price towards the USD 185 level.
Lose more in SOL?
If SOL fails to rise above the $170 resistance, the price may continue to decline. The initial downside support is near the USD 165 level. The first major support is near the $162 level.
A break below the USD 162 level could send the price towards the USD 150 zone. If there is a close below the USD 150 support, the price could fall towards the USD 135 support in the near term.
Technical indicators
Hourly MACD – The MACD for SOL/USD is gaining speed in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major support levels – USD 165 and USD 162.
Major resistance levels – $170 and $172.
