Solana (SOL) Falls Under $200: Temporary Setback or Trend Shift?

The attempt to surpass the $225 barrier by Solana was unsuccessful, leading to a reduction in its gains. Currently, the price of Solana (SOL) has dropped below $200 and exhibits some indications of a potential downtrend.

  • SOL price started a fresh decline after it failed to stay above $220 against the US Dollar.
  • The price is now trading below $200 and the 100-hourly simple moving average.
  • There is a connecting bearish trend line forming with resistance at $204 on the hourly chart of the SOL/USD pair (data source from Kraken).
  • The pair could start a fresh increase if the bulls clear the $205 zone.

Solana Price Dips Again

The Solana price found it challenging to surpass the $220-$225 area and instead initiated a downward trend, similar to both Bitcoin and Ethereum. A drop occurred below the support levels of $212 and $205.

The cost dropped beneath a significant support level at $200 and reached as low as $196.73. At present, the price is stabilizing after experiencing losses, currently sitting below the 23.6% Fibonacci retracement level following the downward trend from the peak of $223 to the trough of $196.

Currently, Solana’s trading value has dipped under $200 and it’s also below its 100-hour moving average. Additionally, a bearish trend line is emerging on the hourly chart of SOL/USD, with a resistance at around $204. On the upward trajectory, there seems to be resistance at the $204 level.

As a researcher, I’m observing that the upcoming significant resistance lies around the $210 mark or the 50% Fibonacci retracement point of the downward trend from the $223 peak to the $196 trough. This primary resistance might be at $213. Overcoming and closing above the $213 resistance could pave the way for a continuous upward trend. The next significant resistance is projected to be at $225. Any further growth may propel the price towards the $240 level.

Another Decline in SOL?

Should SOL not surpass the $205 barrier, a potential drop might ensue. A preliminary floor may be found at approximately $196. The primary significant support lies around the $188 mark.

Dropping beneath the $180 mark might push the price down towards the $175 region. Should we observe a closing point below the $175 support, there’s a possibility that the price will fall towards the nearby $162 support level.

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 – $196 and $188.

Major Resistance Levels – $205 and $210.

Read More

2025-01-08 08:12