SOL Price Starts Fresh Decline
The price of Solana (SOL) has begun a new decline after facing resistance at the $106 level. Similar to Bitcoin’s struggle at $43,800, SOL experienced a clear move below the $102 and $100 support levels.
Key Bullish Trend Line Breaks
On the 4-hour chart of the SOL/USD pair, a key bullish trend line with support at $100 was broken. However, the bulls were active near the $92 level and the 100 simple moving average (4 hours). Currently, SOL is attempting to increase above the $95 level.
Retesting Key Levels
SOL retested the $100 zone and the 50% Fibonacci retracement level of the downward move from the swing high of $106.41 to the low of $92.95. The price is now trading above $95 and the 100 simple moving average (4 hours).
Source: SOLUSD on TradingView.com
Resistance and Potential Increase
The immediate resistance lies near the $100 level, followed by a major resistance at around $104 or the 76.4% Fibonacci retracement level. A successful close above $104 could pave the way for another significant increase, with the next key resistance near $112 and potential gains towards $120.
Possible Decline in SOL
If SOL fails to rally above the $100 resistance, another decline may occur. The initial support on the downside is at around $92 and the 100 simple moving average (4 hours). The first major support is near $90, and a close below $85 could lead to a decline towards the $78 support in the near term.
Technical Indicators
The 4-hour MACD for SOL/USD is gaining momentum in the bullish zone. Additionally, the RSI (Relative Strength Index) for SOL/USD is above the 50 level.
Major Support and Resistance Levels
Major support levels for SOL are at $92 and $92, while major resistance levels are at $100, $104, and $112.
Hot Take: Solana Faces Resistance but Maintains Support
Solana’s price has encountered resistance at the $106 level, leading to a fresh decline. However, it has managed to hold support above $92 and the 100 simple moving average (4 hours). The next move depends on whether SOL can surpass the key resistance levels at $100 and $104. If successful, it may see another significant increase. Conversely, if it fails to rally above these levels, another decline is possible. Technical indicators suggest bullish momentum, but it remains to be seen how SOL will perform in the coming days.
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