The price of Solana (SOL) has recently experienced a significant decline, dropping towards $110. Despite this, there is now a slight correction in the price, with some gains being made above $140. However, the price is facing obstacles near the $160 resistance zone. The bearish momentum that SOL has gained has led to a decline below $150 against the US Dollar. Currently, the price is trading below $160 and the 100 simple moving average (4 hours).
A key bearish trend line is forming with resistance at $160 on the 4-hour chart of the SOL/USD pair. The downward trend in the price led to a major decline below the $180 and $160 support levels. This resulted in a drop of over 20%, with Solana even falling below the $150 level. However, the bulls stepped in near $110, with a low being reached at $115.04. The price is now attempting a recovery wave, similar to Bitcoin and Ethereum. There was an increase above the $125 and $132 levels, with the price clearing the 23.6% Fib retracement level of the downward move from the $204 swing high to the $115 low.
Solana is currently trading below $150 and the 100 simple moving average (4 hours). Immediate resistance is seen near the $150 level, with the next major resistance being at $160. A key bearish trend line is forming with resistance at $160 on the 4-hour chart of the SOL/USD pair. If the price successfully closes above this resistance, it could pave the way for another significant increase. The next major resistance level after $160 is near $182, with further gains potentially pushing the price towards $200.
On the other hand, if SOL fails to rally above the $160 resistance, it could lead to another decline. Initial support on the downside is around the $140 level, with the first major support located at $132. If the price drops below $132, it could test $125. A close below the $125 support level may result in a decline towards the $115 support in the near future.
Looking at the technical indicators, the 4-hour MACD for SOL/USD is gaining momentum in the bullish zone. However, the 4-hour RSI (Relative Strength Index) is currently below the 50 level.
The latest price analysis of Solana shows a mixed outlook for the cryptocurrency. While there are signs of a potential recovery with resistance levels to overcome, there is also the possibility of further declines if key levels are not breached. Traders and investors are advised to conduct their own research and analysis before making any investment decisions, as investing in cryptocurrencies carries inherent risks.