Solana Price Corrects Lower
In recent days, the price of Solana (SOL) experienced a significant rally above the $60 level, outperforming Bitcoin and Ethereum. However, the bears have now appeared, causing a downside correction.
The price is currently trading below $60 and the 100 simple moving average (4 hours). There was also a break below a short-term rising channel with support near $58.00 on the 4-hour chart of the SOL/USD pair.
As a result, there is a possibility of further downward movement below the $55.00 support zone in the upcoming sessions.
Possible Support and Resistance Levels
On the upside, immediate resistance is near the $59.50 level, which is close to the 50% Fib retracement level of the downward move from the swing high to the low. The first major resistance is near $60.00.
If SOL fails to recover above this resistance, it could continue to move down. The first major support on the downside is near $55.00, followed by the $51.20 level. A close below $50 could lead to a decline toward the $45 support in the near term.
Technical Indicators
The MACD for SOL/USD on the 4-hour chart is losing pace in the bullish zone, indicating a potential shift in momentum. Additionally, the RSI for SOL/USD is below the 50 level.
Hot Take: Solana Faces Downside Correction as Bulls Lose Momentum
Solana’s recent rally above $60 has encountered resistance, leading to a downside correction. While SOL initially showed strong bullish momentum and outperformed other cryptocurrencies, it has now fallen below key support levels. The break below the short-term rising channel suggests a possible continuation of the downward trend.
Resistance levels to watch include $59.50, $60.00, and $62.00, while support levels are at $55.00 and $51.20. Traders should pay attention to the MACD and RSI indicators for further confirmation of the bearish sentiment.
Overall, SOL’s price movement in the coming sessions will determine whether it can regain bullish momentum or if further losses are in store.
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