Solana (SOL) experienced a significant drop of nearly 10%, failing to break above the $135 resistance level. This decline has prompted bearish sentiments in the market, with further downsides expected.
The SOL price has remained in a bearish zone below the $142 resistance against the US Dollar and is currently trading below $130 and the 100-hourly simple moving average. On the hourly chart of the SOL/USD pair, a connecting bearish trend line is forming with resistance at $130, indicating potential resistance levels to watch.
If the price continues to decline and closes below the $122.50 support zone, there is a possibility for further losses. In recent trading, Solana attempted a recovery wave above the $132 level but was met with resistance at $135, resulting in a renewed downturn.
The price dropped below key support levels at $130 and $125, reaching a low of $123.24. Currently, SOL is trading in a downtrend, and a successful recovery wave may face resistance near the $126.50 level or the 23.6% Fib retracement level.
Immediate resistance is expected at the $128.50 level, followed by the $130.00 level and the trend line. A close above the $130.00 resistance could pave the way for further gains, with the next key resistance near $132.50 and potentially the $136.50 level.
However, if SOL fails to recover above the $130.00 resistance, it may experience another decline. The initial support on the downside is near the $123.50 level, followed by the major support at $122.00. A close below the $120.00 support may exacerbate the decline, potentially leading the price towards the $112.50 support.
In terms of technical indicators, the MACD for SOL/USD is gaining momentum in the bearish zone, while the RSI is below the 20 level, indicating a bearish sentiment.
Key support levels to watch are $122.00 and $120.00, while major resistance levels are $126.50, $130.00, and $132.50.
Overall, the recent dip in Solana’s price has triggered market reactions, with traders closely monitoring the support and resistance levels for potential future movements.