Solana (SOL) Sees Decline from Critical Level—Is Support on the Horizon?

Solana could not remain above the $142 mark and has seen a dip. The SOL price is currently below $140, with potential support near the $135 area.

Key Takeaways

SOL price has begun a downward correction after failing to hold above $142 against the US Dollar.
Currently, the price is trading above $135 and remains above the 100-hourly simple moving average.
A bullish trend line is forming with support at $135 on the hourly chart of the SOL/USD pair (data sourced from Kraken).
If SOL drops below the $135 level, it may face further losses.

Solana (SOL) Sees Decline from Critical Level

Solana Price Begins Downtrend

The price of Solana has struggled to break past $145 and began a downward correction, similar to trends seen in Bitcoin and Ethereum. SOL has fallen below both the $142 and $140 levels, entering a temporary bearish phase. It also dipped below the 50% Fibonacci retracement level of the upward movement from the $131 low to the $145 high. Nevertheless, bulls are showing interest around the $136 mark. In addition, a bullish trend line is forming with support situated at $135 on the hourly chart for the SOL/USD pair.

Solana Price
Source: SOLUSD on TradingView.com

At present, Solana is trading above $135 and the 100-hourly simple moving average. Resistance is encountered near the $140 threshold, with primary resistance located near $145. If significant momentum is achieved above this resistance, $148 could be the next notable barrier. Achieving a close above $148 could pave the way for another steady increase, with subsequent resistance around $155. Any additional gains could push the price up towards the $165 mark.

Possible Further Decline for SOL?

If SOL is unable to break above the $142 resistance level, it may initiate another downturn. Initial support on the downside is around the $136 level, as well as the 61.8% Fibonacci retracement level of the upward movement from the $131 low to the $145 high. The first significant support to watch is near the $135 level, coinciding with the trend line.

A break below the $135 level could drive the price down to the $132 support zone. If the price closes below this support level, it might decline further towards the $125 support in the near future.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is picking up momentum in the bearish territory.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD is currently below the 50 level.

Key Support Levels

$135 and $132

Key Resistance Levels

$142 and $145