Solana (SOL) Rebound Feels Exhausted—Are Sellers Taking Over Again?

Solana failed to settle above $86 and corrected most gains. SOL price is now consolidating losses above $82 and might attempt another increase.

• SOL price started a fresh decline below $86 and $85 against the US Dollar.
• The price is now trading below $85 and the 100-hourly simple moving average.
• There was a break above a connecting bearish trend line with resistance at $84 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could start a recovery wave if the bulls defend $83.00 or $82.50.

Solana price failed to remain stable above $88 and started a fresh decline, like Bitcoin and Ethereum. SOL declined below the $86 and $85 levels.

The bears even pushed the price toward $83. A low was formed at $82.96, and the price is now consolidating losses. There was a minor recovery wave above the 23.6% Fib retracement level of the downward move from the $88.08 swing high to the $82.96 low.

Besides, there was a break above a connecting bearish trend line with resistance at $84 on the hourly chart of the SOL/USD pair. Solana is now trading near $85 and the 100-hourly simple moving average.

On the upside, immediate resistance is near the $85.50 level or the 50% Fib retracement level of the downward move from the $88.08 swing high to the $82.96 low. The next major resistance is near the $86.80 level. The main resistance could be $88. A successful close above the $88 resistance zone could set the pace for another steady increase. The next key resistance is $90. Any more gains might send the price toward the $92 level.

If SOL fails to rise above the $85.50 resistance, it could continue to move down. Initial support on the downside is near the $83.50 zone. The first major support is near the $83 level.

A break below the $83 level might send the price toward the $80 support zone. If there is a close below the $80 support, the price could decline toward the $75 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is gaining pace in the bullish zone.

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

Major Support Levels – $84.00 and $82.00.

Major Resistance Levels – $85.50 and $88.00.