Solana Eases Gains: Can SOL Bulls Safeguard the $132 Support?

As a seasoned crypto investor with years of experience in the market, I’ve seen my fair share of price declines, including Solana’s recent 10% drop from the $155 resistance. The SOL price chart looks ominous right now, with the price trading below key support levels and technical indicators pointing to further potential losses.

Solana experienced a new drop in price after hitting a roadblock at the $155 mark. The value of SOL has decreased by more than 10% since then. However, the bullish investors are currently attempting to fortify the $132 support level.

    SOL price started a strong decline from the $155 resistance against the US Dollar.
    The price is now trading below $145 and the 100-hourly simple moving average.
    There was a break below a connecting bullish trend line with support at $150 on the hourly chart of the SOL/USD pair (data source from Kraken).
    The pair could correct losses unless the bulls struggle to protect the $132 support.

Solana Price Dives 10%

The price of Solana had difficulty advancing beyond the $155 resistance level. In response, SOL dipped and moved beneath the $150 support. A significant downturn caused a breach in the bullish trend line with a support level at $150 on the hourly chart for the SOL/USD pair.

In the previous two trading days, the duo exhibited a significant downtrend below the $145 support level, surpassing the declines of Bitcoin and Ethereum. The price plunged towards the $132 support area where a new low of $132.17 was established. Currently, an upward correction is underway.

The price has climbed above the $135 mark. It’s currently heading towards the 23.6% Fibonacci retreat point, which is a significant level following the recent downtrend from the peak of $154.74 to the trough of $132.17.

Solana’s current trading price is under the $145 mark and falls short of its 100-hour moving average. Should there be another price surge, it may encounter resistance around the $138 region. The next significant resistance lies at approximately $143.50, which also coincides with the 50% Fibonacci retracement level following the downtrend from the peak of $154.74 to the trough of $132.17.

Solana Eases Gains: Can SOL Bulls Safeguard the $132 Support?

Reaching a triumphant closing price above the $143.50 barrier could pave the way for further progress, potentially resulting in a continuous rise. Subsequently, the next significant resistance lies around $150. Overcoming this hurdle could propel the price further, possibly even approaching the $155 mark.

More Losses in SOL?

Should SOL remain unable to surpass the $143.50 resistance point, there’s a risk of another price drop. A supportive floor can be found around the $135 mark.

As a crypto investor, I’d interpret it this way: The first significant level of resistance lies around $132. Should the price break below this mark, we might see a test of the $125 support level. If the price closes beneath $125, it could potentially lead to a downward trend towards the next support at $112 in the short term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is gaining pace in the bearish zone.

Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Major Support Levels – $135, and $132.

Major Resistance Levels – $143.50 and $150.

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2024-07-04 08:28