Solana (SOL) Returns to Support: A Crucial Moment Ahead

Solana has dropped below the $146 mark, experiencing a pullback. Currently, SOL is trading under $145 and may find buying interest around the $140 level.

Key Takeaways

SOL has begun a downward correction after failing to stay above $150.
The price now sits under $145 and the 100-hourly simple moving average.
A bullish trend line is forming, providing support at $141 on the hourly SOL/USD chart.
The cryptocurrency may continue to decline if it falls below the $140 support level.

Solana (SOL) Returns to Support

Solana Price Faces Downward Correction

Solana's price has struggled to maintain its position above $150, initiating a downward correction similar to what Bitcoin and Ethereum have experienced. SOL fell below both the $146 and $145 marks, entering a brief bearish phase.

This decline has seen the price dip below the 61.8% Fibonacci retracement level from the recent upward movement that ranged from a low of $138 to a high of $149. However, bullish momentum still persists above $140, and a bullish trend line is forming with support set at $141 in the hourly SOL/USD chart.

Solana Price Chart

Source: SOLUSD on TradingView.com

Currently, Solana is trading below $145 and underneath the 100-hourly simple moving average. On the upside, the price faces resistance around the $144 level, with the next significant resistance point at $146. The critical resistance threshold could be at $148; successfully closing above this level may pave the way for a steady upward trajectory, potentially reaching $155. If the positive trend continues, SOL could even target the $162 mark.

Potential for Further Losses in SOL

If SOL does not manage to exceed the $146 resistance, a further decline could be imminent. Initial support exists near the $141 level, correlating with the trend line. The first more substantial support level is at $140, coinciding with the 76.4% Fibonacci retracement level from the previous upward movement.

Should the price fall below the $140 mark, it could shift toward the $132 support area. A close below this support may trigger a drop to the $124 support level soon.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is accelerating in the bearish territory.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD is positioned below the 50 mark.
Major Support Levels: $141 and $140.
Major Resistance Levels: $146 and $148.

As the market adjusts, traders and investors should closely monitor these levels for signs of future price movements in Solana.