Solana (SOL) Teeters on the Edge: Is a Steep Decline Next?

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Solana struggled to surpass the $205 barrier, which resulted in reduced gains. Currently, the value of SOL stands below $192, displaying some indications of downward trend.

  • SOL price started a fresh decline after it failed to stay above $200 against the US Dollar.
  • The price is now trading below $192 and the 100-hourly simple moving average.
  • There is a connecting bearish trend line forming with resistance at $190 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 $192 zone.

Solana Price Dips Again

The price of Solana found it challenging to surpass the $200 to $205 range and subsequently dropped, much like Bitcoin and Ethereum. It even fell beneath the support levels at $200 and $192.

The cost dropped beneath the $185 support level, reaching a low at $182.20. Currently, the price is stabilizing and showing signs of recovery below the 23.6% Fibonacci retracement level, which marks the point where a portion of the downward move from the peak at $223 to the trough at $182 has been reclaimed.

As a researcher, I’m observing that Solana (SOL) is currently trading below the $192 mark and slightly below its 100-hour Simple Moving Average. Interestingly, there seems to be a developing bearish trend line linking up, with potential resistance at approximately $190 on the hourly SOL/USD chart. On the positive side, the price is encountering a level of resistance around the $190 region.

Approaching levels of potential resistance lie near $192 and may extend to either the $200 mark or the 50% Fibonacci retracement point from the price drop between the $223 peak and the $182 trough. A successful break above the $200 resistance zone could pave the way for continued upward momentum, with the next significant resistance at $212. Further gains may propel the price towards $225.

Another Decline in SOL?

Should SOL not surpass the $192 barrier, there’s a potential for another drop. A possible floor in this scenario would be around $182, with the primary support potentially found at $180.

Dropping beneath the $180 mark could steer the price towards the $175 region. Should we see a closing price below the $175 resistance, the value might dip towards the nearby $162 support.

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 – $182 and $180.

Major Resistance Levels – $190 and $192.

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2025-01-13 07:52