Solana is falling from the $120 resistance level. SOL price is showing some signs of weakness and may decline sharply towards the $80 support.
- SOL price started a new decline from the $120 resistance against the US dollar.
- The price is currently trading below $102 and the 100 simple moving average (4-hours).
- On the 4-hours chart of the SOL/USD pair, there is a major contraction triangle with resistance forming near $102 (data source from Kraken).
- The pair may continue to decline towards the $85 support level or even $80.
Solana Price Faces Uphill Challenge
After a steady increase, Solana bulls had difficulty clearing the $120 resistance. SOL price formed a short-term high and, like Bitcoin and Ethereum, started a new decline below the $112 support line.
There was a steady decline below the $105 level. The decline pushed the price below the $100 level. $91.50 support was tested. A low was formed near $91.38 and the price is currently consolidating losses. On the 4-hours chart of the SOL/USD pair, there is also a major contraction triangle with resistance forming near $102.
SOL is currently trading below $102 and the 100 simple moving average (4-hours). Immediate resistance is near the $97.40 level. This is close to the 50% Fib retracement level of the downward move from the $103.39 swing high to the $91.38 low.
The first major resistance is near the $100 level or the 76.4% Fib retracement level for a downside move from the $103.39 swing high to the $91.38 low.
Source: SOLUSD on TradingView.com
Key resistance is currently near $102. A successful close above the $102 resistance could set the pace for another major rally. The next major resistance is near $112. Any more profits could push the price down to the $120 level.
Will there be more losses in SOL?
If SOL fails to rebound above the $102 resistance, it could continue falling. Initial support for the downside is near the $92.00 level.
The first major support is near the $85.20 level, below which the price may test $80. If the price closes below the $68 support, the price may decline towards the $74.50 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 – $85 and $80.
Key resistance levels – $97.40, $102, $112.
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