Solana (SOL) Faces Another Rejection, Is A Deeper Correction Ahead?

Solana failed to settle above $90 and extended losses. SOL price is now consolidating losses below $85 and might struggle to start a recovery wave.

• SOL price started a fresh decline below $88 and $85 against the US Dollar.
• The price is now trading below $85 and the 100-hourly simple moving average.
• There is a bearish trend line forming with resistance at $85.50 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could start a recovery wave if the bulls defend $82 or $80.

Solana price failed to remain stable above $90 and started a fresh decline, like Bitcoin and Ethereum. SOL declined below the $88 and $86 levels.

The bears even pushed the price toward $82. A low was formed at $82.92, and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $90.75 swing high to the $82.92 low.

Solana is now trading below $86 and the 100-hourly simple moving average. On the upside, immediate resistance is near the $85 level. There is also a bearish trend line forming with resistance at $85.50 on the hourly chart of the SOL/USD pair.

The next major resistance is near the $86.80 level or the 50% Fib retracement level of the downward move from the $90.75 swing high to the $82.92 low. 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 $86.80 resistance, it could continue to move down. Initial support on the downside is near the $82.80 zone. The first major support is near the $82 level.

A break below the $82 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 $76 support in the near term.

Technical Indicators

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

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

Major Support Levels – $82 and $80.

Major Resistance Levels – $86.80 and $88.00.