- Solana price gained bearish momentum below the $28.00 level against the US Dollar.
- The price is now trading below $25 and the 55 simple moving average (4 hours).
- There is a key bearish trend line forming with resistance near $25.00 on the 4-hour chart of the SOL/USD pair (data feed from Coinbase).
- The pair could recover, but upsides might be limited above the $25 resistance.
Solana price is trading in a bearish zone below $25 against the US Dollar, similar to Bitcoin. SOL could accelerate further lower if it stays below the $25 resistance zone.
Solana (SOL) Price Analysis
SOL price started a major decline below the $28 support zone. The price gained bearish momentum below the $26.50 support zone. The bears were able to push the price below the $25 and $24 support levels.
There was a drop below the $23.50 support and the 55 simple moving average (4 hours). A low was formed near $22.74 and the price is now consolidating losses. It seems like the price might attempt a recovery wave above the $23.50 level.
On the upside, immediate resistance is near the $24.00 level. The next major resistance is near the $25.00 level. There is also a key bearish trend line forming with resistance near $25.00 on the 4-hour chart of the SOL/USD pair. The trend line is near the 23.6% Fib retracement level of the downward move from the $32.40 swing high to the $22.74 low.
A clear move above the $24.00 and $25.00 resistance levels might call for a steady increase. The next major resistance sits near the $27.50 level, above which the price might rise towards the 61.8% Fib retracement level of the downward move from the $32.40 swing high to the $22.74 low at $28.70.
Any more gains might send SOL price toward the $30.00 resistance zone. On the downside, initial support is near the $22.75 level. A downside break below the $22.75 support level might spark a major drop. In the stated case, the price may perhaps decline toward the $20.00 level.
Looking at the chart, Solana price is clearly trading below $25 and the 55 simple moving average (4 hours). Overall, the price could recover, but upsides might be limited above the $25 resistance.
Technical Indicators
4 hours MACD – The MACD is now losing momentum in the bearish zone.
4 hours RSI (Relative Strength Index) – The RSI is now above the 50 level.
Key Support Levels – $22.75 and $22.00.
Key Resistance Levels – $25.00, $27.50, and $28.70.
