Solana (SOL) Clings to Key Support: Is a Bounce Imminent?

Solana has momentarily paused its advance and is currently probing the $132 support level. The Solana price seems to be stabilizing, potentially gearing up for another push beyond the $140 resistance threshold.

    SOL price started a fresh decline below the $145 zone against the US Dollar.
    The price is now trading near $142 and the 100-hourly simple moving average.
    There was a break above a short-term bearish trend line with resistance at $136 on the hourly chart of the SOL/USD pair (data source from Kraken).
    The pair could start a recovery wave if it stays above the $132 support zone.

Solana Price Revisits $132

The price of Solana initially slipped from its $162 peak, mirroring drops experienced by both Bitcoin and Ethereum. This decline caused Solana’s value to fall beneath the supportive levels of $155 and $150, with further losses taking it below $142.

Nevertheless, at the $132 support, the bulls showed activity. A minimum was established at $133.17 and the price is currently holding steady following those losses. There was an upward trend that surpassed the $135 mark. The price also went beyond the 23.6% Fibonacci retracement level, which is calculated from the recent drop from the $1482 peak to the $133 trough.

There was also a break above a short-term bearish trend line with resistance at $136 on the hourly chart of the SOL/USD pair. Solana is now trading below $142 and the 100-hourly simple moving average.

On a positive note, the price appears to be encountering resistance around the $140 mark. A significant resistance lies ahead at approximately $142. This level is not far from the 61.8% Fibonacci retracement level of the recent drop from the peak of $1482 down to $133. The primary resistance for this price movement might be around $148.

Solana (SOL) Clings to Key Support: Is a Bounce Imminent?

If the trade is closed above $148 and $150, it may pave the way for a continued upward trend. The upcoming significant resistance lies around $155. Further growth could push the value towards approximately $162.

More Downsides in SOL?

Should SOL not manage to break through the $140 barrier, a potential further drop might ensue. A preliminary support could be found at around $135. The primary support lies roughly at $132.

Dropping beneath the $132 mark could potentially push the price down to around $120. If the closing price falls below the $120 support, it might lead to a short-term decrease, possibly taking us to the $112 support level.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is losing 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 – $140 and $148.

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2024-10-04 08:10