Solana (SOL) Hints at Bearish Shift: Is Drop on The Horizon?

Solana trimmed gains and traded below the $172 support zone. SOL price is consolidating and might struggle to recover above the $165 resistance.

• SOL price started a fresh decline after it struggled near the $175 zone against the US Dollar.
• The price is now trading below $170 and the 100-hourly simple moving average.
• There is a key bearish trend line forming with resistance at $162 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The pair could start a decent upward movement if it stays above the $155 and $150 support levels.

Solana price struggled to clear the $180 resistance and started a fresh decline like Bitcoin and Ethereum. There was a drop below the $175 and $172 support levels.

The bears even pushed the price below $165 and tested the $155 support zone. A low was formed at $155 and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $173 swing high to the $155 low.

Solana is now trading below $162 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $160 level. The next major resistance is near the $162 level. There is also a key bearish trend line forming with resistance at $162 on the hourly chart of the SOL/USD pair.

The main resistance could be $165 or the 50% Fib retracement level of the downward move from the $173 swing high to the $155 low. A successful close above the $165 resistance level could set the pace for another steady increase. The next key resistance is $172. Any more gains might send the price toward the $180 level.

If SOL fails to rise above the $165 resistance, it could continue to move down. Initial support on the downside is near the $155 level. The first major support is near the $150 level.

A break below the $150 level might send the price toward the $135 zone. If there is a close below the $135 support, the price could decline toward the $124 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is losing pace in the bearish zone.

Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Major Support Levels – $155 and $150.

Major Resistance Levels – $162 and $165.