Solana rebounded above the $65 resistance line against the US dollar. SOL price is now correcting its upward trend and may even fall below the $50 support.
- SOL price began a massive rally above the $60 resistance line before beginning a downtrend against the US dollar.
- The price is currently trading below $60 and the 100 simple moving average (4-hours).
- A break occurred below the short-term ascending channel with support near $58.00 on the 4-hours chart of the SOL/USD pair (data source from Kraken).
- The pair may fall below the $55.00 support in the coming sessions.
Solana price downward adjustment begins
Over the past few days, Solana has seen a significant rally above the $60 level. SOL gained bullish momentum after settling above $60, outperforming Bitcoin and Ethereum.
The bulls even pushed the price above the $65 level. Highs were made near $68.16 and the price recently saw a downward correction. It traded below $60 and tested $52. A low was formed near $51.23 and the price is currently consolidating in a certain range.
On the 4-hours chart of the SOL/USD pair, a break occurred below the short-term ascending channel with support near $58.00. SOL is currently trading below $60 and the 100 simple moving average (4-hours).
On the other hand, immediate resistance is close to the $59.50 level. This is close to the 50% Fib retracement level of the downward move from the $68.16 swing high to the $51.23 low. The first major resistance is near the $60.00 level.
Source: SOLUSD on TradingView.com
Key resistance is currently near $62, or the 61.8% Fib retracement level, down from the $68.16 swing high to the $51.23 low. A successful close above the $62.00 resistance could set the pace for a larger upside. The next major resistance is near $68.50. If more profits are made, the price may rise to the $72.00 level.
Will there be more losses in SOL?
If SOL fails to recover above the $60.00 resistance, the decline may continue. Initial support for the downside is near the $55.00 level.
The first major support is near the $51.20 level, below which the price may test $50. If the price closes below the $50 support, the price may decline towards the $45 support in the near term.
technical indicators
4-Hour MACD – The MACD for SOL/USD is losing speed in bullish territory.
4-Hour RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Key support levels – $55.00 and $51.20.
Key resistance levels – $60.00, $62.00, $68.50.