Solana (SOL) Hints at Downside Correction: Can It Hold Key Support?

As a seasoned researcher with years of experience in the crypto market, I’ve seen my fair share of price movements – some predictable and others quite unpredictable! Currently, Solana (SOL) is correcting its gains after a strong run to the $172 resistance zone. It seems we might be in for a retest of the $162 support zone before the bulls can regain control.


Solana found it challenging to break through the $172 barrier. The current SOL price is showing a correction and could potentially retest the $162 support level.

  • SOL price is correcting gains from the $172 resistance zone against the US Dollar.
  • The price is now trading above $162 and the 100-hourly simple moving average.
  • There was a break below a connecting bullish trend line with support at $166 on the hourly chart of the SOL/USD pair (data source from Kraken).
  • The pair could revisit the $162 support zone before the bulls take a stand.

Solana Price Eyes Retest of Support

The price of Solana surpassed both the $150 and $155 thresholds, and its momentum picked up significantly when it closed above the $162 barrier, which previously served as a resistance. Nevertheless, sellers showed strength around the $172 area.

Initially, the price dipped following a decrease from its peak at around $171, similar to Bitcoin and Ethereum. It fell beneath the $168 mark. Moreover, the price dropped below the halfway point (50%) of the Fibonacci retracement line that extends from the low at $161.23 to the high at $171.00.

Additionally, a downtrend occurred beneath a bullish trendline that offered support at $166, as depicted on the hourly chart for the SOL/USD currency pair. Currently, Solana is trading above $162 and sits above its 100-hour simple moving average.

Solana (SOL) Hints at Downside Correction: Can It Hold Key Support?

Moving forward, the cost seems to be encountering obstacles around the $168 mark. The significant hurdles ahead are at approximately $170 and potentially $172. If we manage to surpass these barriers at $170 and $172, it could pave the way for continuous growth. Another important resistance lies at $180, and further advancements may push the price towards $188.

More Losses in SOL?

If SOL doesn’t manage to surpass the $170 barrier, it might trigger another drop. The potential bottom in this scenario could be around the $164 mark or the 76.4% Fibonacci retracement level derived from the price movement upwards from the $161.23 trough to the $171.00 peak.

As an analyst, I’m observing that the primary support for this asset lies around the $162 mark. A potential drop below the $162 level might trigger a downward trend towards the $155 region. If we see a closing price break beneath the $155 support, it could lead to a near-term decline toward the $150 level as well.

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 – $164 and $162.

Major Resistance Levels – $168 and $172.

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2024-10-23 08:10