Thursday, December 26, 2024
Home > Analysis > Solana (SOL) Slides to Support: Bulls Ready to Defend?

Solana (SOL) Slides to Support: Bulls Ready to Defend?

Solana trimmed gains and traded below the $175 support zone. SOL price is now approaching the $165 support and might bounce back in the near term.

  • SOL price started a fresh decline after it struggled near the $185 zone against the US Dollar.
  • The price is now trading below $172 and the 100-hourly simple moving average.
  • There is a key bearish trend line forming with resistance at $172 on the hourly chart of the SOL/USD pair (data source from Kraken).
  • The pair could start a decent upward movement if it stays above the $165 and $162 support levels.

Solana Price Holds Support

Solana price struggled to clear the $185 resistance and started a fresh decline like Bitcoin and Ethereum. There was a drop below the $180 and $175 support levels.

The bears even pushed the price below $172 and tested the $165 support zone. A low was formed at $165 and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $183 swing high to the $165 low.

Solana is now trading below $172 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $170 level. The next major resistance is near the $172 level. There is also a key bearish trend line forming with resistance at $172 on the hourly chart of the SOL/USD pair.

The main resistance could be $175 or the 50% Fib retracement level of the downward move from the $183 swing high to the $165 low. A successful close above the $175 resistance level could set the pace for another steady increase. The next key resistance is $182. Any more gains might send the price toward the $185 level.

More Losses in SOL?

If SOL fails to rise above the $170 resistance, it could continue to move down. Initial support on the downside is near the $165 level. The first major support is near the $162 level.

A break below the $162 level might send the price toward the $150 zone. If there is a close below the $150 support, the price could decline toward the $135 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 – $165 and $162.

Major Resistance Levels – $170 and $172.

Source