Solana (SOL) Struggles to Maintain $120—Could a Further Decline Be Ahead?

Solana (SOL) Struggles to Maintain $120

Solana has struggled to stay above $132 and has seen a significant drop. Currently, SOL's price is stabilizing below $130 and may face further declines below $120.

Key Takeaways:

SOL's price has dropped below $130 and $128 against the US Dollar.
It is now trading below $128 and the 100-hourly simple moving average.
A critical bearish trend line is forming with resistance at $131 on the hourly SOL/USD chart (data source from Kraken).
If the bulls can defend the $122 or $120 levels, a recovery might begin.

Solana's Price Faces Another Decline

Solana’s price couldn't sustain levels above $132 and has begun another decline, similar to trends seen in Bitcoin and Ethereum. The SOL price has now fallen below both the $130 and $128 support levels.

The price has shown bearish momentum below $126, reaching a low of $121. It is currently consolidating its losses after a brief recovery attempt, where it tested the 23.6% Fibonacci retracement level from the $134 swing high to the $121 low.

Currently, Solana is trading below $128 and the 100-hourly simple moving average. The immediate resistance level lies around $125. A further resistance point emerges at $128, aligning with the 50% Fibonacci retracement level from the previous downtrend.

Solana Price
Source: SOLUSD on TradingView.com

The primary resistance to watch is at $130. A significant bearish trend line is forming with resistance at $131 on the hourly chart of the SOL/USD pair. If the price manages to close above the $132 resistance zone, it could lead to a sustained upward trend. The next major resistance would then likely occur at $140, with further gains potentially pushing the price toward $145.

Is Another Drop in SOL Likely?

Should SOL fail to break through the $128 resistance threshold, it risks continuing its downward trend. The first level of support on the downside is found near the $122 area, with significant support closely following at the $120 level.

A drop below $120 may push the price towards the $112 support zone. Should the price close under the $112 support, it could further decline to around the $105 level in the short term.

Technical Indicators

Hourly MACD: The MACD for SOL/USD is gaining strength in the bearish zone.
Hourly RSI (Relative Strength Index): The RSI for SOL/USD is currently sitting below the 50 mark.
Major Support Levels: $122 and $120.
Major Resistance Levels: $128 and $131.