Solana (SOL) Risks Slipping Deeper Into The Red As Momentum Fades

Solana failed to settle above $84 and trimmed most gains. SOL price is now consolidating losses above $78 and might continue to move down.

• SOL price started a fresh decline below $82 and $81.20 against the US Dollar.
• The price is now trading below $81.20 and the 100-hourly simple moving average.
• There is a bearish trend line forming with resistance at $82.00 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could start a recovery wave if the bulls defend $78.80 or $78.00.

Solana price failed to remain stable above $83.20 and started a fresh decline, like Bitcoin and Ethereum. SOL declined below the $82 and $81.50 levels.

The bears even pushed the price toward $80. A low was formed at $79.01, and the price is now consolidating losses. There was a break above the 38.2% Fib retracement level of the downward move from the $83.26 swing high to the $79.01 low.

Solana is now trading below $81.20 and the 100-hourly simple moving average. On the upside, immediate resistance is near the $81.10 level or the 50% Fib retracement level of the downward move from the $83.26 swing high to the $79.01 low.

The next major resistance is near the $82.00 level. The main resistance could be $82.80. A successful close above the $82.80 resistance zone could set the pace for another steady increase. The next key resistance is $84.50. Any more gains might send the price toward the $85 level.

If SOL fails to rise above the $82.00 resistance, it could continue to move down. Initial support on the downside is near the $79 zone. The first major support is near the $78.00 level.

A break below the $78.00 level might send the price toward the $75 support zone. If there is a close below the $75 support, the price could decline toward the $70 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 – $79.00 and $78.00.

Major Resistance Levels – $81.20 and $82.00.