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Solana (SOL) Falls Under $200: Temporary Setback or Trend Shift?

Solana failed to clear the $225 resistance and trimmed gains. SOL price is now below $200 and showing a few bearish signs.

  • SOL price started a fresh decline after it failed to stay above $220 against the US Dollar.
  • The price is now trading below $200 and the 100-hourly simple moving average.
  • There is a connecting bearish trend line forming with resistance at $204 on the hourly chart of the SOL/USD pair (data source from Kraken).
  • The pair could start a fresh increase if the bulls clear the $205 zone.

Solana Price Dips Again

Solana price struggled to clear the $220-$225 zone and started a fresh decline, like Bitcoin and Ethereum. There was a move below the $212 and $205 support levels.

The price even dipped below the $200 handle. A low was formed at $196.73, and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $223 swing high to the $196 low.

Solana is now trading below $200 and the 100-hourly simple moving average. There is also a connecting bearish trend line forming with resistance at $204 on the hourly chart of the SOL/USD pair. On the upside, the price is facing resistance near the $204 level.

The next major resistance is near the $210 level or the 50% Fib retracement level of the downward move from the $223 swing high to the $196 low. The main resistance could be $213. A successful close above the $213 resistance level could set the pace for another steady increase. The next key resistance is $225. Any more gains might send the price toward the $240 level.

Another Decline in SOL?

If SOL fails to rise above the $205 resistance, it could start another decline. Initial support on the downside is near the $196 level. The first major support is near the $188 level.

A break below the $180 level might send the price toward the $175 zone. If there is a close below the $175 support, the price could decline toward the $162 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is gaining pace in the bearish zone.

Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Major Support Levels – $196 and $188.

Major Resistance Levels – $205 and $210.

Source