Bitcoin

Solana (SOL) Price Analysis: Risk of Another Drop To $16

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  • Solana price gained bearish momentum below the $20.00 level against the US Dollar.
  • The price is now trading below $20 and the 55 simple moving average (4 hours).
  • There is a key bearish trend line forming with resistance near $18.50 on the 4-hour chart of the SOL/USD pair (data feed from Coinbase).
  • The pair could recover, but the upsides might be limited above the $20 resistance.

Solana price is trading in a bearish zone below $20 against the US Dollar, similar to Bitcoin. SOL could accelerate further lower if it stays below the $19.00 resistance zone.

Solana (SOL) Price Analysis

SOL price started a major decline below the $22 support zone. The price gained bearish momentum below the $22 support zone. The bears were able to push the price below the $19.50 and $18.50 support levels.

A low was formed near $17.34 and the price is now consolidating losses. It seems like the price might attempt a recovery wave above the $18.00 level. There was already a move above the 23.6% Fib retracement level of the downward move from the $20.60 swing high to the $17.34 low.

On the upside, immediate resistance is near the $18.50 level. There is also a key bearish trend line forming with resistance near $18.50 on the 4-hour chart of the SOL/USD pair.

The next major resistance is near the $19.00 level or the 50% Fib retracement level of the downward move from the $20.60 swing high to the $17.34 low. A clear move above the $18.50 and $19.00 resistance levels might call for a steady increase.

The next major resistance sits near the $20.0 level, above which the price might rise toward $20.60. Any more gains might send SOL price toward the $22 resistance zone.

On the downside, initial support is near the $17.80 level. A downside break below the $17.80 support level might spark a major drop. In the stated case, the price may perhaps decline toward the $16.00 level.

Solana (SOL) Price
Solana (SOL) Price

Looking at the chart, Solana price is trading below $20 and the 55 simple moving average (4 hours). Overall, the price could recover, but the upsides might be limited above the $20 resistance.

Technical Indicators

4 hours MACD – The MACD is now gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.

Key Support Levels – $17.80 and $17.40.

Key Resistance Levels – $18.50, $19.00, and $20.00.

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