Solana (SOL) Flashes Breakdown Signs: Will Support Hold?

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As a seasoned analyst with a knack for spotting trends in the crypto market, I see Solana’s recent correction below the $146 support as a temporary setback rather than a long-term bearish signal. The price consolidation could be a chance to catch our breath before resuming its upward trajectory.

After a drop, Solana has fallen beneath its $146 support level. The current price of SOL suggests it’s stabilizing and could potentially rise further, as long as it doesn’t breach the $140 mark.

    SOL price started a fresh decline below the $146 zone against the US Dollar.
    The price is now trading near $145 and the 100-hourly simple moving average.
    There was a break below a key bullish trend line with support at $149 on the hourly chart of the SOL/USD pair (data source from Kraken).
    The pair could start a fresh increase if it stays above the $140 support zone.

Solana Price Corrects Gains

As a crypto investor, I witnessed an exciting rise in the Solana (SOL) price, surging past the $145 and $146 mark. However, just as it touched $152, the bears made their move, initiating a correction similar to what Bitcoin and Ethereum are experiencing currently.

The cost dropped beneath two significant support points, which were at $150 and $146. It also broke a significant bullish trend line with a support at $149 on an hourly chart for the SOL/USD pair. This caused the pair to fall below the 23.6% Fibonacci retracement level, which marks the downward move from the $133 low to the $152 high.

Currently, Solana is hovering around the $145 mark and aligning with its 100-hour moving average. It appears that the bulls are quite active, maintaining their position above the $142 support level and the 50% Fibonacci retracement point of the price surge from the $133 low to the $152 high.

Looking on the optimistic side, the cost is encountering resistance around the $146.50 mark. The following significant resistance lies at approximately $150. If necessary, further resistance could be found at $152. Breaking above both $150 and $152 resistance levels might pave the way for continued growth. The subsequent crucial resistance is around $160. Any additional increases may propel the price towards the $172 range.

More Downsides in SOL?

If SOL doesn’t manage to surpass the $146.50 barrier, there might be a new fall in store. On the downside, an initial floor could form around $142. A more substantial support lies roughly at $140.

Dropping beneath the $140 mark might push the price down towards the $132 range. Should we see a closing below the $132 resistance level, there’s a possibility that the price will trend lower towards the $120 support 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 – $140 and $142.

Major Resistance Levels – $150 and $152.

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2024-10-08 07:52