- Solana (SOL) price is showing bearish signs below the $20.50 resistance against the United States Dollar.
- The price is now trading below $19.80 and the 100 simple moving average (4 hours).
- There is a major bearish tendency line forming with resistance near $19.90 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
- The pair could recover but upsides can potentially be limited over $20.
Solana (SOL) Price Extends Losses
This last week, Solana’s price started a fresh decline from well over $21. Solana (SOL) gained bearish momentum and was able to trade below the $20.50 support.
The bears gained strength and pushed the price below the $20 support. The price is now showing bearish signs below $20, similar to Bitcoin (BTC) and Ethereum (ETH). A low is formed near $18.70 and the price is now consolidating losses.
Solana (SOL) is now trading below $19.80 and the 100 simple moving average (4 hours). There is likewise a major bearish tendency line forming with resistance near $19.90 on the 4-hour chart of the SOL/USD pair. On the upside, immediate resistance is near the $19.80 level and the tendency line.
The following major resistance is near the $20 zone or the 50 percent Fib retracement level of the downward move from the $21.51 swing high to the $18.70 low. The key resistance is now forming near the $20.50 level and the 100 simple moving average (4 hours).
Source: SOLUSD on TradingView.com
The 61.8 percent Fib retracement level of the downward move from the $21.51 swing high to the $18.70 low is likewise near $20.50. A close over the $20.50 level could resend the price toward the $21.50 resistance zone. Any more profits can potentially send the price toward the $22 level.
More Losses in SOL?
If Solana (SOL) fails to clear the $20.50 resistance, it can potentially continue to move down. Initial support on the downside is near the $19.00 level.
The 1st major support is near the $18.80 level, below which the bears can potentially gain strength. In the stated case, Solana (SOL) price may perhaps decline toward the $18.20 support. The following major support is near the $17.50 level.
Technical Indicators
4-Hours MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $18.80, and $18.20.
Major Resistance Levels – $20.00, $20.50, and $21.50.
