Solana (SOL) Faces Another Setback: A Possible Further Decline

Solana struggled to maintain its position above $145 and has now experienced a notable decline. The SOL price is currently stabilizing below $135 and may drop further beneath $130.

Key Takeaways

Solana’s price has started to fall below key levels of $138 and $135 against the US Dollar.
The SOL price is trading below both $135 and the 100-hourly simple moving average.
There’s a significant bearish trend line with resistance positioned at $140 on the hourly chart for the SOL/USD pair (data sourced from Kraken).
A recovery may occur if buyers manage to maintain support at either $132 or $130.

Solana (SOL) at Crossroads

Solana’s Price Decline Continues

Solana has struggled to stay above $142, leading to a fresh decline akin to the movements of Bitcoin and Ethereum. The SOL price has now dipped below the crucial support levels of $140 and $138.

Bearish momentum has intensified as the price fell below $135, reaching a low point of $130, where it is currently consolidating losses. There was a slight recovery above the 23.6% Fibonacci retracement level of the downward move from the $143 swing high to the $130 low.

Currently, Solana trades below $135 and the 100-hourly simple moving average. Immediate resistance is observed around the $135 mark, with the next significant resistance near $136, marking the 50% Fibonacci retracement level from the $143 swing high to the $130 low.

Solana Price
Source: SOLUSD on TradingView.com

The primary resistance level lies at $140. A bearish trend line is also forming with resistance at $140 on the hourly chart of the SOL/USD pairing. A successful close above this $140 resistance could trigger another upward trend, paving the way toward the next key resistance at $144. Further gains may push the price toward the $150 mark.

Will There Be Another Decline for SOL?

If SOL is unable to surpass the $136 resistance level, it could continue its downward trajectory. Initial support on the downside is close to the $132 mark, with major support positioned at the $130 level.

If the SOL price dips below the $130 level, it may head toward the $122 support area. A closing price below this $122 level could see it decline toward the $115 support in the near future.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is gaining momentum in the bearish region.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD is presently below the 50 level.
Major Support Levels: $132 and $130.
Major Resistance Levels: $136 and $140.

This overview should assist beginners in understanding the current conditions affecting Solana’s price and its potential future movements.