Solana (SOL) Faces Decline Towards Key Support as Markets Prepare for Next Move

Solana has seen a drop, moving below the critical $135 mark, and the price is currently stabilizing under $130, with the possibility of dropping further beneath $125.

Key Takeaways

Solana's price has dipped below the important $135 and $130 levels against the US Dollar.
Currently, the price is trading below both $130 and the 100-hour simple moving average.
A bearish trend line is forming with resistance at $136 on the hourly chart for the SOL/USD pairing.
There is potential for recovery if support holds at $125 or $120.

Solana (SOL) Sees Red

Solana Price Decline Explained

Solana's price has struggled to stay above $140 and has begun a new downward trend, similar to the movements seen in Bitcoin and Ethereum. The SOL price fell below significant support levels at $135 and $132.

After establishing bearish momentum beneath the $130 mark, Solana reached a low of $123. The price is currently hovering around this low point, having made a slight recovery by testing the 23.6% Fibonacci retracement level of the decline from the $144 peak to the $123 trough.

As it stands, Solana is trading below $130 and below the 100-hourly simple moving average. The immediate resistance lies around the $128 level, with the next significant barrier around $130. Higher resistance levels could be near $134 or the 50% Fibonacci retracement level of the downturn from the $144 high to the $123 low.

Solana Price
Source: SOLUSD on TradingView.com

A key bearish trend line is also present with resistance at $136 on the hourly chart for the SOL/USD pair. A successful break above this resistance could initiate a more persistent upward movement, with the next key resistance level established at $140. Additional gains may drive the price toward $145.

What Lies Ahead for SOL?

If Solana fails to break through the $130 resistance level, further declines could be anticipated. The initial support on the downside is situated around the $125 area. The first significant support level to watch is near $122.

Should the price drop below the $122 mark, it might fall towards the $120 support zone. If a close below $120 occurs, Solana may experience a decline toward the $112 support level soon.

Technical Analysis

Hourly MACD: The MACD for SOL/USD is picking up speed within the bearish zone.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD remains below the 50 thresholds.
Major Support Levels: $125 and $122.
Major Resistance Levels: $130 and $136.