Solana Price Outlook: Will SOL Start Another Decline?
After experiencing a major decline below key support levels at $170 and $160, Solana’s price has tested the $115 zone before initiating an upside correction. Although the price surged above the $130 and $140 levels, it faced resistance near the $160 zone and the 50% Fib retracement level. Currently, Solana is trading below $160 and the 100 simple moving average (4 hours), with a key bullish trend line forming at $146 on the 4-hour chart of the SOL/USD pair.
Solana Price Faces Resistance
The recent price action for Solana reflects a struggle to break through the resistance levels after the significant drop. Despite briefly climbing above the 23.6% Fib retracement level and the 100 simple moving average (4 hours), the bears remained active near the $160 zone. The inability to surpass this resistance level led to a correction in gains.
Key Technical Indicators
- MACD: The MACD for SOL/USD is gaining momentum in the bearish zone.
- RSI: The RSI for SOL/USD is currently below the 50 level.
- Support Levels: $146, $132.
- Resistance Levels: $155, $160, $170.
Another Decline in SOL?
If Solana fails to secure a rally above the $160 resistance level, it could potentially trigger another decline in price. In such a scenario, initial support can be expected at the $145 level along with the key bullish trend line. A breach below $132 may lead to a test of the $120 support level, with a further downside potentially targeting the $100 support in the short term.
Summary: What’s Next for SOL Price?
As Solana faces resistance at the $160 level and continues to trade below the 100 simple moving average (4 hours), the immediate outlook remains uncertain. The formation of a key bullish trend line at $146 could provide support in case of a further decline. Traders will closely monitor the price action to gauge whether SOL can break through the resistance levels at $160 and $170 to spark a potential uptrend.
Hot Take: Stay Alert for SOL’s Next Move
Keep a close watch on Solana’s price movement, especially around the critical resistance levels at $160 and $170. With the MACD indicating bearish momentum and the RSI below the 50 level, the potential for another decline in SOL cannot be ruled out. Traders should remain vigilant and adapt their strategies accordingly to navigate the volatility in the SOL/USD pair.
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