Solana (SOL) Trims Recent Gains, Market Sentiment Turns Fragile Again
TL;DR
Solana's price has dropped below $85, correcting recent gains and entering a bearish zone. The cryptocurrency may aim for recovery if it holds above the $82.50 support level.
Key points
- Solana price dropped below $86 and $85
- Current trading below the 100-hourly simple moving average
- Support level at $82.50 on the hourly chart
- Price tested the $83.65 support
- Potential for further losses if below $82.50
Solana failed to stay above $86 and corrected some gains. SOL price is now consolidating and might aim for another increase if it stays above $82.50.
- SOL price started a downside correction below $85 against the US Dollar.
- The price is now trading below $85 and the 100-hourly simple moving average.
- There is a declining channel forming with support at $82.50 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could extend losses if it dips below the $82.50 zone.
Solana Price Dips Again
Solana price failed to stay above $86 and started a downside correction, like Bitcoin and Ethereum. SOL dipped below $85 and $84 to enter a short-term bearish zone.
There was a move below the 50% Fib retracement level of the upward wave from the $81.37 swing low to the $87.39 high. The price even tested the $83.65 support. Besides, there is a declining channel forming with support at $82.50 on the hourly chart of the SOL/USD pair.
Source: SOLUSD on TradingView.com
Solana is now trading below $85 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $85.50 level. The next major resistance is near the $86 level. The main resistance could be $87.40. A successful close above the $87.40 resistance zone could set the pace for another steady increase. The next key resistance is $92. Any more gains might send the price toward the $95 level.
Downside Break In SOL?
If SOL fails to rise above the $86 resistance, it could start another decline. Initial support on the downside is near the $83.50 zone and the 61.8% Fib retracement level of the upward wave from the $81.37 swing low to the $87.39 high. The first major support is near the $82.50 level.
Q&A
What is the current price trend of Solana (SOL)?
Solana's price is currently in a downside correction, trading below $85 and entering a bearish zone.
What support level should Solana (SOL) maintain to avoid further losses?
Solana needs to stay above the $82.50 support level to potentially aim for another increase.
How did Solana's price perform compared to Bitcoin and Ethereum?
Solana's price correction mirrors similar trends observed in Bitcoin and Ethereum, indicating a broader market sentiment shift.
