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Solana (SOL) Hints at Bearish Shift: Is Drop on The Horizon?

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Solana pared gains and traded below the $172 support zone. SOL price is consolidating and may have difficulty recovering above the $165 resistance level.

  • SOL price started a new decline after struggling near the $175 area against the US dollar.
  • The price is now trading below the $170 level and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance at $162 on the hourly chart of the SOL/USD pair (data source from Kraken).
  • The pair could start a good upward movement if it remains above the $155 and $150 support levels.

Solana price extends losses

Solana price struggled to cross the $180 resistance level and started a new decline like Bitcoin and Ethereum. There was a drop below the $175 and $172 support levels.

The bears even pushed the price below $165 and tested the support area at $155. A bottom was formed at $155 and the price is now consolidating its losses under the 23.6% Fib retracement level of the downward move from the $173 swing high to the $155 low.

Solana is now trading below the $162 level and the 100 hourly simple moving average. On the upside, the price is facing resistance near the $160 level. The next major resistance is near the $162 level. There is also a major bearish trend line forming with resistance at $162 on the hourly chart of the SOL/USD pair.

Key resistance could be at $165 or the 50% Fib retracement level of the downward move from the high of $173 to the low of $155. A successful close above the $165 resistance level could set the pace for another steady increase. The next major resistance is $172. Any further gains could push the price towards the $180 level.

More losses in SOL?

If SOL fails to rise above the $165 resistance level, it may continue lower. Initial support on the downside is near the $155 level. The first major support is near the $150 level.

A break below the $150 level could send the price towards the $135 region. If there is a close below the $135 support level, the price may fall towards the $124 support level in the near term.

Technical indicators

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

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

Key Support Levels – $155 and $150.

Major resistance levels – $162 and $165.

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