Solana started a fresh decline below the $112 support zone. SOL price is now consolidating and might struggle to stay above the $100 support zone.
- SOL price started a fresh decline below $112 support zone against the US Dollar.
- The price is now trading below $105 and the 100-hourly simple moving average.
- There was a break below a key contracting triangle with support at $118 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could accelerate lower if there is a break below the $100 support zone.
Solana Price Dips Over 15%
Solana price started a fresh decline below the $122 and $115 levels, like Bitcoin and Ethereum. SOL even declined below the $112 support level to enter a bearish zone.
There was a break below a key contracting triangle with support at $118 on the hourly chart of the SOL/USD pair. The price declined over 15% and traded close to the $102 level. A low was formed at $102 and the price recently started a consolidation phase.
The current price action is still very bearish below 23.6% Fib retracement level of the downward move from the $121 swing high to the $102 low. Solana is now trading below $105 and the 100-hourly simple moving average.
On the upside, the price is facing resistance near the $105 level. The next major resistance is near the $112 level or the 50% Fib retracement level of the downward move from the $121 swing high to the $102 low. The main resistance could be $116.
A successful close above the $116 resistance zone could set the pace for another steady increase. The next key resistance is $120. Any more gains might send the price toward the $125 level.
Another Decline in SOL?
If SOL fails to rise above the $105 resistance, it could start another decline. Initial support on the downside is near the $102 zone. The first major support is near the $100 level.
A break below the $100 level might send the price toward the $92 zone. If there is a close below the $92 support, the price could decline toward the $84 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $102 and $100.
Major Resistance Levels – $105 and $112.
Credit: Source link
