Solana Struggles to Clear Resistance
Solana (SOL) has faced resistance at the $22.00 level in recent days, failing to gain enough strength to break through. Similar to other cryptocurrencies like Bitcoin and Ethereum, SOL experienced a bearish reaction, dropping below the $21.20 support. Additionally, the news of a potential sell-off of SOL by FTX adds further pressure on the bulls. The price has now fallen below $20 and the 100 simple moving average (4 hours), finding support at around $17.80. Currently, SOL is consolidating its losses and facing a major bearish trend line with resistance near $19.20. The immediate resistance sits at $18.50, with the possibility of further gains if the price surpasses $20.00.
Source: SOLUSD on TradingView.com
Potential for Further Losses in SOL
If SOL fails to overcome the $19.20 resistance, it may continue to move downwards. Initial support is found at the $17.80 level, followed by a major support level at $17.20. A close below $17.20 could lead to a decline towards the $16.50 support. In this scenario, there is a risk of further downsides towards the $15.00 support in the near future. The 4-hour MACD for SOL/USD is indicating bearish momentum, while the RSI remains below the 50 level.
Major Support Levels: $17.80, $17.20
Major Resistance Levels: $19.20, $20.00, $22.00
Hot Take: Solana Battles Resistance as Bearish Pressure Mounts
Solana’s struggle to break through resistance at $22.00 reflects the broader bearish sentiment in the cryptocurrency market. The failure to gain momentum above key levels has resulted in a drop below $20 and the 100 simple moving average. The possibility of a sell-off by FTX adds to the bearish pressure on SOL, leading to a consolidation of losses near the $17.80 support. The presence of a major bearish trend line further hampers a potential recovery. To reverse the trend, SOL must overcome resistance at $19.20 and $20.00. Otherwise, the cryptocurrency risks further losses, with support levels at $17.80 and $17.20 being crucial in determining its future trajectory.
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