Solana (SOL) Loses Momentum—Can Sellers Regain Control?

Solana (SOL) Corrects Some Gains

Solana has initiated a recovery wave above the $126 mark, but the SOL price is currently consolidating and encounters challenges around the $132 level.

Key Takeaways:

The price of SOL has started a recovery wave, surpassing $126 and $128 against the US Dollar.
It is currently trading below $130 and the 100-hour simple moving average.
A significant bearish trend line is developing with resistance at $132 on the hourly chart for the SOL/USD pair (data sourced from Kraken).
If the price breaks through $130 and $132 successfully, it may continue to rise.

Solana Price Confronts Resistance

The Solana price has shown stability and initiated a notable recovery from $124, which mirrors the performance of Bitcoin and Ethereum. SOL managed to rise above the $126 threshold. It also moved beyond the 23.6% Fibonacci retracement level of the downturn from the $136 high to the $124 low. The bulls managed to push the price above $130; however, selling pressure remained prevalent near the $130 mark. Additionally, a crucial bearish trend line is forming, presenting resistance at $132 on the hourly chart for the SOL/USD pair.

Currently, Solana is trading below both the $130 mark and the 100-hour simple moving average. Immediate resistance lies around $130, along with the 100-hour average and the 61.8% Fibonacci retracement level from the recent decline.

Solana Price
Source: SOLUSD on TradingView.com

The next significant resistance for SOL is near the $132 zone, with critical resistance identified at $135. A confident close above $135 could pave the way for a steady upward movement, aiming for the next key resistance at $144. Any additional increase might push the price towards the $150 mark.

Potential Decline in SOL?

Should SOL be unable to breach the $132 resistance level, it may continue to experience downward movement. The initial support on the downside is situated around the $126 area, with the first major support near $124.

A dip below the $124 level could drive the price toward the $116 support zone. Should there be a close beneath the $116 mark, Solana might decline towards the $108 range in the near future.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is currently gaining momentum within the bearish territory.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD is tracking below the 50 level.
Major Support Levels: $126 and $124.
Major Resistance Levels: $130 and $132.