Solana (SOL) Breakdown Continues: $90 at Risk, $80 Appears Vulnerable

Solana has struggled to maintain a position above $102 and has seen further losses. The SOL price is now facing challenges below $95 and may find it difficult to initiate a recovery.

Key Takeaways

Solana's price has entered a new decline, slipping below both $100 and $95 against the US Dollar.
The current trading level is below $100 and the 100-hour simple moving average.
A significant bearish trend line is forming, presenting resistance at around $98, based on the hourly chart for the SOL/USD pair (data sourced from Kraken).
There's potential for recovery if the bulls can defend the $90 or $85 support levels.

Solana (SOL) Breakdown Continues

Solana's Price Declines Further

Solana's price could not maintain stability above $105 and has begun a new downward trend, similar to Bitcoin and Ethereum. SOL recently dipped below key support levels of $100 and $95.

Following this, the price lost momentum below $92, reaching a low of $89. Currently, it is consolidating losses and remains under the 23.6% Fibonacci retracement level of the downward move from the $106 swing high to the $89 low.

As of now, Solana is trading below $95 and the 100-hour simple moving average. Immediate resistance is located around the $93 level, while the next significant resistance can be found near $97, correlating with the 50% Fibonacci retracement level from the previous decline. A crucial bearish trend line is also taking shape, presenting resistance at $98 on the hourly chart of the SOL/USD pair.

Solana Price Analysis
Source: SOLUSD on TradingView.com

The primary resistance level to watch is $102. A successful close above this zone could trigger a renewed upward trend, with the next key resistance level at $106. Further gains might propel the price up to the $112 area.

Are More Losses Ahead for SOL?

If SOL cannot rise above the $98 resistance level, it may continue to experience declines. Initial support lies near the $90 mark, while the first major support level is at $85.

A break below the $85 level could drive the price down to the $82 support zone. Should there be a close below this level, the price may potentially decline toward the $74 support in the near future.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is gaining strength in the bearish territory.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD remains below the 50 level.
Major Support Levels: $90 and $85.
Major Resistance Levels: $98 and $102.