Solana is moving lower than the $120 resistance. SOL price is showing some bearish signals and may decline sharply towards the $80 support.
- SOL price started a new decline from the $120 resistance against the US dollar.
- The price is now trading below $102 and the 100 simple moving average (4-hours).
- A key contracting triangle is forming with resistance near $102 on the 4-hour chart of the SOL/USD pair (data source Kraken).
- The pair could continue to fall towards the $85 or even $80 support.
Solana Price faces a daunting task
After a steady rise, Solana bulls struggled to clear the $120 resistance. SOL price formed a short-term high and started a new decline below the $112 support, like Bitcoin and Ethereum.
There has been a steady decline below the $105 level. The bears pushed the price below the $100 level. It tested the $91.50 support. A low has formed near $91.38 and the price is now consolidating losses. There is also a key contracting triangle forming with resistance near $102 on the 4-hour chart of the SOL/USD pair.
SOL is now trading below $102 and the 100 simple moving average (4-hours). Immediate resistance is near the $97.40 level. It is near the 50% Fib retracement level of the downside move from the swing high of $103.39 to the low of $91.38.
The first major resistance is near the $100 level or the 76.4% Fibonacci retracement level of the downside move from the swing high of $103.39 to the low of $91.38.
Source: SOLUSD on TradingView.com
The main resistance is now near $102. A positive close above the $102 resistance could set the pace for another major rally. The next key resistance is near $112. Any further gains could send the price towards the $120 level.
More losses in the SOL?
If SOL fails to clear the $102 resistance, it may continue to fall. Initial support on the downside is near the $92.00 level.
The first major support is near the $85.20 level, below which the price could test $80. If a close below the $68 support occurs, the price may fall towards the $74.50 support in the short term.
Technical indicators
4-Hour MACD – The MACD for SOL/USD is gaining ground in the bearish zone.
4-Hour RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major support levels: $85 and $80.
Major resistance levels: $97.40, $102 and $112.
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