Solana (SOL) Faces Downward Pressure: Is a Drop Below $85 on the Horizon?

Solana has struggled to maintain its position above the $92 mark and has experienced a drop. The SOL price is currently consolidating beneath $90 and may have difficulty initiating a recovery.

Key Takeaways

SOL price has begun to decline, falling below $90 and $88 against the US Dollar.
The price trades below $88 and the 100-hourly simple moving average.
A bearish trend line is forming with resistance around $88 on the SOL/USD hourly chart (data sourced from Kraken).
If buyers can defend the $85 or $80 levels, the price may initiate a recovery.

Solana (SOL) Faces Downward Pressure

Overview of Solana's Price Movement

Solana's price has struggled to hold steady above $92 and has entered into a new decline, paralleling movements in Bitcoin and Ethereum. SOL has fallen below the significant support levels of $90 and $88.

The bearish momentum gained traction as the price dropped below $87.20, hitting a low point at $85.10. Currently, the price is lingering beneath the 23.6% Fibonacci retracement level of its decline, reflecting the drop from the swing high of $90.81 to the low of $85.10.

Solana Price Movement
Source: SOLUSD on TradingView.com

At present, Solana is trading under $88 and beneath the 100-hourly simple moving average. The immediate resistance level is found near $88, which coincides with a key bearish trend line on the hourly chart of the SOL/USD pair.

The next notable resistance is around the $88.60 mark or the 61.8% Fibonacci retracement level from the previous downward movement. The substantial resistance level is pegged at $90, and if the price can close above this zone, it may pave the way for further gains. The subsequent resistance could be at $95; additional increases might elevate the price towards the $102 mark.

Will SOL Experience More Losses?

Should SOL fail to surpass the $88 resistance, it may continue its downward trend. On the downside, the first line of support is positioned close to the $85 area, with the first significant support near $82.

A breakdown below $82 may lead the price to the $80 support zone. If the price closes beneath $80, it could further decline toward the $74 support area in the near future.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is accelerating further into the bearish territory.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD currently lies below the 50 level.

Major Support Levels: $85 and $80
Major Resistance Levels: $88 and $90