Solana is attempting a recovery in the $80 region. SOL price may struggle to clear the $92 and $94 resistance levels in the near term.
- SOL price started a new decline from the $104 resistance against the US dollar.
- The price is currently trading below $95 and the 100 simple moving average (4-hours).
- On the 4-hours chart of the SOL/USD pair, a breakout occurred above the main bearish trendline with resistance at $85.00 (data source from Kraken).
- Failure to clear the $92 or $94 resistance levels could start another downtrend for the currency pair.
Solana Price Faces Major Hurdle
Solana price, like Bitcoin, began a new downtrend and was trading below the $95 support zone. There was a clear move below the $92 and $90 support levels.
Finally, SOL price found support near $79. A low was made near $78.96 and the price is currently attempting an Ethereum-like recovery. There was a move above the $84 resistance line. The price broke above the 23.6% Fib retracement level of the downward move from the $103.40 swing high to the $78.96 low.
Moreover, on the 4-hours chart of the SOL/USD pair, there was a break above the main bearish trend line at $85.00, which is the resistance level. It is currently trading below $95 and the 100 simple moving average (4-hours).
Immediate resistance is near the $91.20 level. This 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 100-hours SMA.
Source: SOLUSD on TradingView.com
Key resistance is currently near $98. A successful close of the $98 resistance level could set the pace for another big rally. The next major resistance is near $112. Any more profits could push the price down to the $120 level.
Another drop in SOL?
If SOL fails to rebound above the $91.20 resistance, it could begin another downtrend. Initial support for the downside is near the $84.80 level.
The first major support is near the $80.00 level, below which the price may test $75.00. If the price closes below the $68 support, the price may decline towards the $72.50 support in the near term.
technical indicators
4-Hour MACD – The MACD for SOL/USD is picking up speed in bearish territory.
4-Hour RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Key support levels – $84.80 and $80.00.
Key resistance levels – $91.20, $94.00, $98.00.
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