Solana (SOL) Experiences Decline; Traders Prepare for Potential Selloff

The Solana network is finding it challenging to maintain a price above $85, leading to further losses. SOL is currently trading below $80 and may face obstacles in initiating a recovery.

Key Takeaways

Solana's price has declined below $88 and $85 against the US Dollar.
The cryptocurrency is trading below $86 and a critical 100-hourly moving average.
A breakdown occurred beneath a bullish trend line at $81.50 on the SOL/USD hourly chart.
A rebound could occur if buyers manage to protect support levels at $78 or $75.

Solana (SOL) Breaks Down

Solana Price Falls Below $85

Solana's price has struggled to hold above $85 and has initiated a fresh decline, similar to the trends seen in Bitcoin and Ethereum. SOL has dropped below $82 and $80.

The price movement indicates a breach of a bullish trend line that provided support at $81.50 on the SOL/USD hourly chart. The downward pressure from sellers has brought the price to the $78 mark. The lowest point recorded was $78.30, and the price is now stabilizing below the 23.6% Fibonacci retracement level relative to the decline from the $86.63 swing high to the low of $78.30.

Solana is currently trading under $86, as well as the 100-hourly simple moving average. Immediate resistance can be found around the $80.25 level, while further significant resistance is positioned at $82.50, which aligns with the 50% Fibonacci retracement level from the previous high to the recent low.

Solana Price Source: SOLUSD on TradingView.com

The most critical resistance point is $85. If the price can successfully close above this zone, it may trigger a new upward trend. The next crucial resistance level is $88, and further gains could push the price toward the $92 mark.

Potential for Further Losses in SOL?

Should SOL fail to overcome the resistance at $82.50, it might continue its descent. Initial support is seen near the $78 zone, with major support further down at $75.

A breach of the $75 mark could push the price to the $70 support zone. If the price closes below $70, it may decline further to the $62 support level in the near future.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is gaining momentum in bearish territory.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD is below the 50 mark.
Major Support Levels: $78 and $75.
Major Resistance Levels: $82.50 and $85.00.