Solana (SOL) Hits Key Support, Will Bulls Hold the Line?

Solana failed to settle above $92 and extended losses. SOL price is now consolidating losses below $88 and might struggle to start a recovery wave.

• SOL price started a fresh decline below $90 and $88 against the US Dollar.
• The price is now trading below $88 and the 100-hourly simple moving average.
• There is a key bearish trend line forming with resistance at $88 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could start a recovery wave if the bulls defend $85 or $80.

Solana price failed to remain stable above $93 and started a fresh decline, like Bitcoin and Ethereum. SOL declined below the $90 and $88 levels.

The bears even pushed the price toward $85. A low was formed at $85.42, and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $93.40 swing high to the $85.42 low.

Solana is now trading below $88 and the 100-hourly simple moving average. On the upside, immediate resistance is near the $88 level. There is also a key bearish trend line forming with resistance at $88 on the hourly chart of the SOL/USD pair.

The next major resistance is near the $89.40 level or the 50% Fib retracement level of the downward move from the $93.40 swing high to the $85.42 low. The main resistance could be $92. A successful close above the $92 resistance zone could set the pace for another steady increase. The next key resistance is $95. Any more gains might send the price toward the $102 level.

If SOL fails to rise above the $88 resistance, it could continue to move down. Initial support on the downside is near the $85 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 $74 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 – $85 and $80.

Major Resistance Levels – $88 and $92.