Solana (SOL) Experiences Pullback as Momentum Weakens

Solana was unable to maintain its position above $144, leading to a correction in its gains. The SOL price is currently trading below $140 and may find some support in the $135 range.

Key Takeaways

SOL price has started to decline, trading below $140 against the US Dollar.
The cryptocurrency is currently above $135 and the 100-hourly simple moving average.
A bearish trend line supporting at $144 has been breached on the hourly SOL/USD chart.
Further losses may occur if the price dips below the $135 support level.

Solana (SOL) Needs to Hold $200

Solana's Price Corrects Downward

The price of Solana struggled to maintain its momentum above $148 and has begun to correct downward, trailing behind Bitcoin and Ethereum. SOL has fallen below the $145 and $144 marks, entering a short-term bearish phase.

This downturn includes a drop below the 23.6% Fib retracement level from the recent upward movement, which ranged from a low of $123 to a high of $147. Additionally, the breach of a bullish trend line previously supportive at $144 is evident on the hourly SOL/USD chart.

Solana Price Source: SOLUSD on TradingView.com

Currently, Solana is trading above $135 and the 100-hourly simple moving average. Resistance is being faced around the $142 level, with the next major hurdle at $145. A decisive breakthrough above the $148 resistance point could pave the way for further increases. The next notable resistance level is positioned at $155, with potential to push the price toward $165 if gains continue.

What This Means for SOL: Potential for Further Declines

Should SOL not manage to break through the $145 resistance level, another downward movement could occur. Initial support is seen near the $135 zone, coinciding with the 50% Fib retracement level from the recent upward swing. The first significant support is around $132.

If the price falls below the $132 level, it may drop to the $128 support zone. A close beneath this support could lead to further declines toward the $122 level in the short term.

Technical Indicators

Hourly MACD: Indicates increasing bearish momentum.
Hourly RSI (Relative Strength Index): The RSI is positioned below 50.

Major Support Levels

$135
$132

Major Resistance Levels

$142
$148