Solana has been attempting a recovery wave above the $140 level, but the SOL price is now facing significant challenges in clearing the $160 and $170 resistance levels. Despite a brief period of recovery and a test of the $160 resistance against the US Dollar, the price is currently trading below $160 and the 100 simple moving average (4 hours). This indicates that there is strong resistance preventing a sustained upward trend in SOL price.
On the 4-hour chart of the SOL/USD pair sourced from Kraken, a key bullish trend line has formed with support at $146. This trend line serves as an important indicator of potential price movements, suggesting that a break below this level could result in further declines for SOL. The failure to break through the resistance levels at $160 and $170 may signal the start of another downward trend in SOL price.
While Solana did experience an upside correction after testing the $115 zone, the inability to sustain gains above the $160 zone and the 50% Fib retracement level of the downward wave suggest that bears are currently active in the market. The price struggled to maintain momentum above $155 and the 100 simple moving average (4 hours), further indicating that a lack of bullish pressure could result in further declines for SOL.
Solana is currently trading below $160 and the 100 simple moving average (4 hours), with immediate resistance near the $155 level. The next major resistance is located at $160, with a successful close above this level potentially paving the way for another major increase in SOL price. However, if the price fails to rally above $160 resistance, it could signal the start of another decline.
When analyzing the technical indicators for SOL/USD, the MACD is gaining pace in the bearish zone while the RSI is below the 50 level. This suggests that there is currently more selling pressure than buying pressure in the market, potentially leading to further declines in SOL price. Major support levels are identified at $146 and $132, while major resistance levels are set at $155, $160, and $170.
The current state of Solana’s price action indicates a struggle to overcome key resistance levels, with bears exerting pressure on the market. While there was a brief period of upside correction, the inability to sustain gains above critical levels suggests that SOL price may be poised for further declines in the near term. Traders and investors are advised to exercise caution and conduct their own research before making any investment decisions.