Solana (SOL) recently saw its price trimmed gains and tested the $132 support level. The coin is currently in a consolidation phase and may potentially aim for a fresh increase above the $140 resistance zone. However, recent price action has shown some downside momentum as the coin struggled to maintain its bullish stance.
The price of SOL started a fresh decline below the $145 zone against the US Dollar, indicating a shift in market sentiment. Currently, SOL is trading near $142 and is hovering around the 100-hourly simple moving average. Despite this bearish movement, there was a positive development as a short-term bearish trend line with resistance at $136 was broken on the hourly chart of the SOL/USD pair (data source from Kraken). This breakout could potentially signal a recovery wave if the coin manages to stay above the critical $132 support zone.
Solana price revisited the $132 level after starting a fresh decline from the $162 resistance level, mirroring the overall market trend seen in Bitcoin and Ethereum. The coin dropped below key support levels at $155 and $150, leading to a dip below $142. However, bulls were quick to defend the $132 support level, with the price forming a low at $133.17 before consolidating losses and making a minor recovery.
The price of SOL managed to climb above the $135 level and surpassed the 23.6% Fibonacci retracement level of the recent decline from the $148 swing high to the $133 low. Additionally, the breakout above the short-term bearish trend line at $136 provided some relief for Solana bulls. Currently, the price is facing resistance near the $140 level, with the next major resistance at $142. A break above this resistance could pave the way for further gains towards the $148 level, with key resistance at $150 and $155.
On the downside, failure to surpass the $140 resistance level could lead to another decline. Initial support is seen at $135, with the critical support level at $132. A break below $132 could bring the price closer to the $120 zone, with further downside potential towards the $112 support level.
In terms of technical indicators, the hourly MACD for SOL/USD is showing signs of losing pace in the bearish zone, while the hourly RSI is below the 50 level. This indicates a potential struggle for Solana to regain bullish momentum in the near term.
Looking ahead, it is crucial for Solana to maintain support above the $132 level and break above the $140 resistance to signal a potential recovery. The next key levels to watch are $148 and $150, with further gains likely pushing the price towards $155 and $162 levels.
In conclusion, Solana’s price action is at a critical juncture as it navigates through key support and resistance levels. Traders and investors should closely monitor the $132 and $140 levels for potential breakout opportunities. As the cryptocurrency market continues to evolve, staying updated with the latest news and trends is essential for making informed decisions. For more trending news articles like this, visit DeFi Daily News for the latest updates on the decentralized finance sector.
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