Solana Price Structure Suggests Temporary Recovery Before Next Major Decision
Solana's price structure hints at a possible temporary recovery before a major market decision.
NewsBTC1 min read
Solana (SOL) Rebound Feels Exhausted—Are Sellers Taking Over Again?
TL;DR
Solana's price has declined below $86 and is currently consolidating above $82. A recovery may occur if bulls defend the $83 or $82.50 levels.
Key points
- Solana price declined below $86 and $85 against the US Dollar
- Current trading is below $85 and the 100-hourly simple moving average
- Price could recover if bulls defend $83.00 or $82.50
Solana failed to settle above $86 and corrected most gains. SOL price is now consolidating losses above $82 and might attempt another increase.
- SOL price started a fresh decline below $86 and $85 against the US Dollar.
- The price is now trading below $85 and the 100-hourly simple moving average.
- There was a break above a connecting bearish trend line with resistance at $84 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The price could start a recovery wave if the bulls defend $83.00 or $82.50.
Solana Price Dips From $88
Solana price failed to remain stable above $88 and started a fresh decline, like Bitcoin and Ethereum. SOL declined below the $86 and $85 levels.
The bears even pushed the price toward $83. A low was formed at $82.96, and the price is now consolidating losses. There was a minor recovery wave above the 23.6% Fib retracement level of the downward move from the $88.08 swing high to the $82.96 low.
Besides, there was a break above a connecting bearish trend line with resistance at $84 on the hourly chart of the SOL/USD pair. Solana is now trading near $85 and the 100-hourly simple moving average.
Source: SOLUSD on TradingView.com
On the upside, immediate resistance is near the $85.50 level or the 50% Fib retracement level of the downward move from the $88.08 swing high to the $82.96 low. The next major resistance is near the $86.80 level. The main resistance could be $88. A successful close above the $88 resistance zone could set the pace for another steady increase. The next key resistance is $90. Any more gains might send the price toward the $92 level.
More Losses In SOL?
If SOL fails to rise above the $85.50 resistance, it could continue to move down. Initial support on the downside is near the $83.50 zone. The first major support is near the $83 level.
Q&A
What caused Solana's price decline below $86?
Solana's price declined due to failure to maintain stability above $88, leading to a drop below key support levels.
What are the critical support levels for Solana's price?
The critical support levels for Solana are $83.00 and $82.50, which bulls need to defend to initiate a potential recovery.
How does Solana's price movement compare to Bitcoin and Ethereum?
Solana's price movement mirrors that of Bitcoin and Ethereum, which also experienced declines after failing to hold key resistance levels.
