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Solana (SOL) Slides to Support: Bulls Ready to Defend?

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Solana trimmed gains and traded below the $175 support zone. SOL price is now approaching the $165 support level and may bounce back in the near term.

  • SOL price started a new decline after struggling near the $185 area against the US dollar.
  • The price is now trading below the $172 level and the 100 hourly simple moving average.
  • There is a major bearish trend line forming with resistance at $172 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 $165 and $162 support levels.

Solana price holds support

Solana price struggled to cross the $185 resistance level and started a new decline like Bitcoin and Ethereum. There was a drop below the $180 and $175 support levels.

The bears even pushed the price below $172 and tested the $165 support area. A bottom was formed at $165 and the price is now consolidating its losses under the 23.6% Fib retracement level of the downward move from the swing high of $183 to the low of $165.

Solana is now trading below the $172 level and the 100 hourly simple moving average. On the upside, the price is facing resistance near the $170 level. The next major resistance is near the $172 level. There is also a major bearish trend line forming with resistance at $172 on the hourly chart of the SOL/USD pair.

Key resistance could be at $175 or the 50% Fibonacci retracement level of the downward move from the high of $183 to the low of $165. A successful close above the $175 resistance level could set the pace for another steady increase. The next major resistance is $182. Any further gains could push the price towards the $185 level.

More losses in SOL?

If SOL fails to rise above the $170 resistance level, it may continue lower. Initial support on the downside is near the $165 level. The first major support is near the $162 level.

A break below the $162 level could send the price towards the $150 region. If there is a close below the $150 support level, the price may fall towards the $135 support level in the near term.

Technical indicators

Hourly MACD – The MACD for SOL/USD is accelerating into the bearish zone.

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

Key Support Levels – $165 and $162.

Major resistance levels – $170 and $172.

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