Solana started a new surge above the $200 support area. SOL price is correcting gains and must remain above $200 to achieve a new increase.
- SOL price started a new increase after settling above the $188 level against the US Dollar.
- The price is now trading below the $212 level and the 100 hourly simple moving average.
- There was a break below the major uptrend line with support at $210 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could start a new increase if the bulls defend the $200 support area.
Solana price begins a downward correction
Solana price formed a support base and started a new rise above the $185 level like Bitcoin and Ethereum. There was a strong move above the $195 and $200 resistance levels.
The price even crossed the $212 level. The high was formed at $225 and the price is now correcting its gains. There was a move below the $220 and $212 levels. The price fell below the 50% Fib retracement level of the upward move from the $195 swing low to the $225 swing high.
There was a break below the major uptrend line with support at $210 on the hourly chart of the SOL/USD pair. Solana is now trading below the $212 level and the 100 hourly simple moving average.
The price is now approaching the major support level at $200 and the 76.4% Fibonacci retracement level of the upward move from the swing low at $195 to the swing high at $225. On the upside, the price is facing resistance near the $208 level. The next major resistance is near the $212 level.
The main resistance could be at $225. A successful close above the $225 resistance level could set the pace for another steady increase. The next major resistance is $242. Any further gains could push the price towards the $250 level.
More losses in SOL?
If SOL fails to rise above the $212 resistance level, it may continue lower. Initial support on the downside is near the $202 level. The first major support is near the $200 level.
A break below the $200 level could send the price towards the $195 region. If there is a close below the $195 support level, the price may fall towards the $185 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 – $200 and $195.
Key resistance levels – $208 and $212.
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