Solana stock started to decline from the resistance level of $155. SOL price dropped by more than 10%, but bulls are now protecting the support level of $132.
- SOL price started to decline strongly from the $155 resistance level against the US Dollar.
- The price is now trading below the $145 level and the 100 hourly simple moving average.
- There was a break below the bullish trend line connected with support at $150 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair may correct its losses unless bulls find it difficult to protect the $132 support level.
Solana price drops by 10%
Solana price struggled to continue rising above the $155 resistance level. Solana responded to the downside and dropped below the $150 support level. There was a break below the ascending trend line connected to the $150 support level on the hourly chart of the Solana/USD pair.
The pair gained bearish momentum below the $145 support level and declined more than Bitcoin and Ethereum in the past two sessions. There was a decline towards the $132 support area. A bottom was formed at $132.17 and the price is now trying to stage a recovery wave.
There was a move above the $135 level. The price is now approaching the 23.6% Fib retracement level of the recent decline from the $154.74 high to $132.17 low.
Solana stock is now trading well below the $145 level and the 100-hour simple moving average. If there is another rally, the price could face resistance near the $138 level. The next major resistance is near the $143.50 level and the 50% Fib retracement level of the recent decline from the $154.74 high to $132.17 low.
A successful close above the $143.50 resistance level could pave the way for another steady rise. The next major resistance is near $150. Any further gains could push the price towards the $155 level.
More losses in SOL?
If SOL fails to rise above the $143.50 resistance level, it could start declining again. The initial support on the downside is near the $135 level.
The first major support is near the $132 level, below which the price could test the $125 level. If a close below the $125 support level, the price could decline towards the $112 support level in the near term.
Technical indicators
Hourly MACD – The MACD for SOL/USD is gaining momentum in the bearish zone.
Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Key support levels – $135 and $132.
Key resistance levels – $143.50 and $150.
