Solana (SOL) Faces Rejection Near $90, Downtrend Risks Resurface

Solana has struggled to maintain levels above $90 and has recently given back some of its gains. Currently, SOL's price is stabilizing above $85, but some bearish indicators have emerged.

Key Takeaways

Solana's price initially recovered above $82 and $85 against the US Dollar.
The price is currently positioned above $85, aided by the 100-hourly simple moving average.
A significant bullish breakout occurred above a bearish trend line with resistance at $85.50.
Future upward momentum may depend on clearing the higher resistance levels at $88 and $90.

Solana (SOL) Faces Rejection Near $90

Solana's Price Recovery Efforts

The price of Solana (SOL) has shown resilience, initiating a recovery above the $82 mark, paralleling the movements of Bitcoin and Ethereum. SOL successfully moved beyond the $85 threshold, demonstrating a bounce back from a recent dip. It broke through the 50% Fibonacci retracement level, recovering from a swing high of $94.10 to a low of $80.29, and also crossed a significant bearish trend line at $85.50 on the hourly chart for the SOL/USD pair.

Despite this upward movement, the bears still pose a threat near the $88.80 level, which coincides with the 61.8% Fibonacci retracement from the aforementioned swing. Presently, Solana trades above $85 and remains supported by the 100-hourly simple moving average.

Solana Price
Source: SOLUSD on TradingView.com

On the upward front, immediate resistance is found around $87.20, with the next significant barrier at $88.80. The major resistance level is seen at $90. A successful close above this $90 resistance could pave the way for a sustained upward trend, potentially targeting a key resistance level of $95, with further gains possibly leading the price toward the $102 mark.

Potential Decline for SOL?

Should SOL fail to surpass the resistance at $88.80, it may face a downward trajectory. Initial support is present at the $84.50 level, with a more substantial support zone located around $82.50. Any breach below $82.50 could drive the price down toward the $80 support area. A close beneath $80 may trigger a further decline toward the $74 level in the short term.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is gaining momentum within the bearish zone.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD is currently below the 50 level.

Major Support Levels: $84.50 and $82.50
Major Resistance Levels: $88.80 and $90