Solana (SOL): Bulls Struggle To Protect Key Support

Table of Contents

Solana price started a downside correction from the $118 zone against the US Dollar.
The price is now trading below $112 and the 55 simple moving average (4 hours).
There was a break below a key bullish trend line with support at $110 on the 4-hour chart of the SOL/USD pair (data feed from Coinbase).
The pair must stay above the $103 and $100 support levels to start another increase.

Solana price is trading above $100 against the US Dollar, like Bitcoin. SOL is consolidating gains and might start a fresh increase above $110.

Solana (SOL) Price Analysis

SOL price attempted more upsides above the $106 resistance zone. The price climbed above the $112 zone, but the bears were active near the $118 zone.

A high was formed near $118.71 before there was a downside correction. The price declined below the $112 support zone. There was a break below a key bullish trend line with support at $110 on the 4-hour chart of the SOL/USD pair.

The bears were able to push the price below the 50% Fib retracement level of the upward wave from the $93.04 swing low to the $118.71 high. It is now trading below $112 and the 55 simple moving average (4 hours).

On the downside, initial support is near the $103.50 level. It is close to the 61.8% Fib retracement level of the upward wave from the $93.04 swing low to the $118.71 high. The next major support is near the $100 level. A downside break below the $100 support level might spark a sharp decline.

In the stated case, the price may perhaps decline toward the $92 level. Any more losses might call for a test of $85. On the upside, immediate resistance is near the $110 level. The next major resistance is near the $115 zone. Any more gains might send SOL price toward the $125 resistance zone, above which the price could accelerate higher. The next major resistance sits near the $132 level.

Looking at the chart, Solana price is clearly trading below $110 and the 55 simple moving average (4 hours). Overall, the price must stay above the $103 and $100 support levels to start another increase.

Technical Indicators

4 hours MACD – The MACD is now losing momentum in the bullish zone.

4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.

Key Support Levels – $103 and $100.

Key Resistance Levels – $110, $115, and $125.