SOL Price Dump and Pump, Can Solana Overcome Selling Pressure?
Solana experienced a significant decline, dropping to around $110. However, the price is now showing signs of correction, trading above $140 and facing resistance around the $160 level.
The bearish momentum caused SOL price to fall below $150 against the US Dollar. It is currently trading below $160 and the 100 simple moving average (4 hours). On the 4-hour chart of the SOL/USD pair, a bearish trend line is forming with resistance at $160, indicating a potential obstacle for further recovery. The price must surpass the $150 and $160 resistance levels to continue its upward trend.
After the major decline below the key support levels of $180 and $160, Solana experienced a drop of over 20% and settled near $110. However, the bulls emerged, and the price is now attempting a recovery similar to that of Bitcoin and Ethereum. It managed to break above the $125 and $132 levels and surpassed the 23.6% Fib retracement level from the previous downward move.
Nevertheless, Solana is still trading below $150 and the 100 simple moving average (4 hours). The immediate resistance is at $150, followed by the significant barrier at $160. A close above $160 would pave the way for further increases, with the next key resistance level at $182. Additional gains could push the price toward $200.
If the price fails to break the $160 resistance level, it may trigger another decline. The initial support on the downside is around $140, followed by a major support level at $132. A close below $125 could lead to a further decline toward the $115 support in the short term.
Based on technical indicators, the MACD for SOL/USD is currently gaining momentum in the bullish zone. However, the RSI is below the 50 level.
In summary, while Solana is attempting to recover, it is still facing selling pressure. It must surpass the resistance levels at $150 and $160 to continue its upward movement. Conversely, if it fails to overcome the selling pressure, it could experience further declines towards $132 and $115.
Disclaimer: The article is for educational purposes only and does not constitute investment advice. Trading carries risks, and it is advised to conduct thorough research before making any investment decisions.