Solana recently experienced a downward trajectory, dropping below key support levels of $155 and $150. As a result, SOL price dipped to $140 and is currently struggling to initiate a recovery wave. This recent movement mirrors the trends in other major cryptocurrencies like Bitcoin and Ethereum.
The decline in SOL price was particularly notable, leading to a testing of the $140 support level. Following this drop, the price consolidated losses, with a minor uptick above $142 and $143 levels. The price even managed to surpass the 23.6% Fibonacci retracement level of the downward movement from the swing high of $161.95 to the low of $140.53.
Currently, Solana is trading below $150 and the 100-hourly simple moving average. Resistance is seen around the $146 level, with a short-term declining channel forming resistance at $145.50 on the hourly chart of the SOL/USD pair. The next significant obstacle for a potential recovery lies near the $148 level.
Looking ahead, if SOL manages to break above the $148 and $150 resistance levels, it could pave the way for a sustained upward movement. Subsequent hurdles may be encountered around $152 or the 50% Fibonacci retracement level, ultimately aiming for a push towards $162.
Potential Downside Scenarios
Should SOL struggle to surpass the $146 resistance, it may face renewed downward pressure. Initial support levels to watch include $142, with a critical support zone near $140. A breach below $140 could trigger a further decline towards $132, and a conclusive close below this level could see the price dropping to the $125 support in the near future.
In terms of technical indicators, the hourly MACD for SOL/USD signifies a prevalent bearish trend, while the hourly RSI is below the 50 level, indicating a period of consolidation. Key support levels to monitor are $142 and $140, with major resistance levels located at $146 and $148.
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Conclusion
The recent price movements in Solana reflect the broader trends in the cryptocurrency market, with key support levels being tested and the potential for recovery depending on multiple factors. As traders and investors navigate through the volatility, keeping a close eye on support and resistance levels, as well as technical indicators, is crucial for making informed decisions.
Whether SOL manages to overcome current resistance levels and initiate an upward trajectory or faces further downside pressure remains to be seen. Monitoring price movements and staying informed through reliable sources like DeFi Daily News can provide valuable insights to navigate the ever-changing landscape of digital assets.
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