Solana failed to clear the $225 resistance and cut gains. The price of SOL is now below $200 and showing few bearish signs.
- The price of SOL started to decline again 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 new rally if the bulls clear the $205 area.
Solana Price Dips Again
Solana price struggled to clear the $220-$225 area and started a new low, like Bitcoin and Ethereum. There was a move below the $212 and $205 support levels.
The price even went below the $200 handle. A low was formed at $196.73, and the price now includes losses below the 23.6% Fib retracement level of the downside from the $223 high to low of $196.
Solana is now trading below $200 with a simple 100 hourly moving average. There is also a connecting bearish line forming with resistance at $204 on the SOL/USD hourly chart. On the other hand, 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 downside from the $223 swing high to the $196 low. The main resistance would be $213. A successful close above the $213 resistance level could halt the pace of further upside. The next key resistance is $225. Any further gains could send the price to the $240 level.
Another Refusal to SOL?
If SOL fails to rise above the $205 resistance, it could start another decline. The first support on the downside is near the $196 level. The first major support is near the $188 level.
A break below the $180 level would send the price to the $175 area. If there is a close below the $175 support, the price may drop to the $162 support in the near term.
Technical References
Hourly MACD – The SOL/USD MACD is gaining momentum in bearish territory.
Hourly RSI (Relative Strength Index) – RSI for SOL/USD is below the 50 level.
Major Support Levels – $196 and $188.
Major Resistance Levels – $205 and $210.