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Solana (SOL) Faces Headwinds: Can Bulls Revive Momentum?

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Solana remained stable above $215. SOL price is now recovering from its losses and facing hurdles near the $228 and $332 levels.

  • SOL price started a new increase after testing the $215 area against the US Dollar.
  • The price is now trading below the $225 level and the 100 hourly simple moving average.
  • There was a break above the connecting downtrend line with resistance at $222 on the hourly chart of the SOL/USD pair (data source from Kraken).
  • The pair could start a new increase if the bulls cross the $228 area.

Solana Price looks for bullish breakout

Solana price formed a support base and started a new rise from the $215 level but lagged behind momentum such as Bitcoin and Ethereum. There was a good increase above the $218 and $220 resistance levels.

There was a break above the connecting downtrend line with resistance at $222 on the hourly chart of the SOL/USD pair. The pair rose above $225 and tested the 50% Fibonacci retracement level of the downward move from the high of $234 to the low of $215.

However, the price is now facing several hurdles near $225. Solana is now trading below the $225 level and the 100 hourly simple moving average. On the upside, the price is facing resistance near the $225 level.

The next major resistance is near the $228 level or the 61.8% Fib retracement level of the downward move from the $234 swing high to the $215 low. The main resistance could be at $230. A successful close above the $230 resistance level could pave the way for another steady increase. The next major resistance is $235. Any further gains could push the price towards the $250 level.

Another drop in SOL?

If SOL fails to rise above the $228 resistance level, it could start another decline. Initial support on the downside is near the $220 level. The first major support is near the $215 level.

A break below the $215 level could send the price towards the $205 region. If there is a close below the $205 support level, the price may fall towards the $200 support level in the near term.

Technical indicators

Hourly MACD – The MACD for SOL/USD is losing strength in the bullish zone.

Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Key Support Levels – $220 and $215.

Key resistance levels – $228 and $230.

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