Solana is trying to trigger a recovery wave from the $80 zone. SOL price might struggle to break the USD 92 and USD 94 resistance levels in the near term.
- SOL price started a fresh decline after the $104 resistance against the US dollar.
- The price is now trading below $95 and the 100 simple moving average (4 hours).
- There was a break above a key bearish trendline with resistance at $85.00 on the 4-hour chart of the SOL/USD pair (Kraken data source).
- The pair could fall again if it fails to break the $92 or $94 resistance.
Solana Price faces significant hurdles
Solana price, like Bitcoin, started falling again and traded below the $95 support zone. There was a clear move below the USD 92 and USD 90 support levels.
Finally, SOL price found support near the $79 zone. A low was formed near $78.96, and the price is now trying to make a recovery wave just like Ethereum. There was a move above the resistance at $84. The price climbed above the 23.6% Fib retracement level of the downward move from the $103.40 swing high to the $78.96 low.
Additionally, there was a break above a key bearish trendline with resistance at $85.00 on the 4-hour chart of the SOL/USD pair. It is now trading below $95 and the 100 simple moving average (4 hours).
Immediate resistance is near the $91.20 level. It is close to the 50% Fib retracement level of the downward move from the $103.40 swing high to the $78.96 low. The first major resistance is near the $94 level or the hourly 100-SMA.
Source: SOLUSD on TradingView.com
The main resistance is now near $98. A successful close above the $98 resistance could set the pace for another big move higher. The next major resistance is near USD 112. Any further gains could send the price towards the USD 120 level.
Another drop in the SOL?
If SOL fails to break above the USD 91.20 resistance, it could trigger a fresh decline. The initial downside support is near the $84.80 level.
The first major support is near the USD 80.00 level, below which the price could test USD 75.00. If there is a close below the USD 68 support, the price could fall towards the USD 72.50 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 84.80 and USD 80.00.
Major resistance levels – $91.20, $94.00 and $98.00.
Disclaimer: The article is for educational purposes only. It does not represent NewsBTC’s views on buying, selling or holding investments and of course investing involves risks. You are advised to conduct your own research before making any investment decisions. Use the information on this website entirely at your own risk.