Solana Price Correction and Potential Downside Movement
Following a failed attempt to surpass the $162 mark, Solana’s price has started to correct lower. As a result, SOL dropped below the $155 support level, entering a short-term bearish phase similar to Bitcoin and Ethereum.
The hourly chart for the SOL/USD pair indicates a break below a rising channel with crucial support at $154. The pair extended its decline below $145 and even tested the $140 region, forming a low at $141.29 before consolidating its losses.
Currently, Solana is trading below $150 and the 100-hourly simple moving average. Despite facing resistance near the $145 level, it is approaching the 23.6% Fib retracement level from the recent downward move. The next major hurdle lies near $150 or the 50% Fib retracement level, which could determine the cryptocurrency’s future price action.
Potential for Further Declines in SOL’s Price
If SOL struggles to surpass the $150 resistance level, it might initiate another downtrend. The initial support on the downside is around $142, followed by a more significant support level at $140.
A breach below $140 could potentially drive the price towards $132, with further downside leading to a test of the $124 support level in the short term.
Key Technical Indicators to Watch
As for the technical indicators:
- Hourly MACD – Indicates a slowdown in bearish momentum for SOL/USD.
- Hourly RSI (Relative Strength Index) – Currently below the 50 level, reflecting bearish sentiment for SOL/USD.
Important price levels to monitor include:
- Major Support Levels – $142 and $135
- Major Resistance Levels – $150 and $155
Hot Take: Stay Cautious Amidst Solana’s Price Correction
Considering Solana’s recent price correction and potential for further downside, it is advisable to approach trading with caution. As the cryptocurrency market remains volatile, staying informed and monitoring key support and resistance levels can help you make well-informed decisions regarding your trading strategy.
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