Solana (SOL) Strength Fades, Will Bulls Regain Momentum Soon?

Solana failed to settle above $90 and corrected most gains. SOL price is now consolidating losses above $85 and might attempt another increase.

• SOL price started a fresh decline below $88 and $87 against the US Dollar.
• The price is now trading near $86 and the 100-hourly simple moving average.
• There is a bullish trend line forming with support 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 $85.50 or $85.

Solana price failed to remain stable above $90 and started a fresh decline, unlike Bitcoin and Ethereum. SOL declined below the $88 and $87 levels.

The bears even pushed the price toward $85. A low was formed at $85.55, and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $89.34 swing high to the $85.55 low.

Solana is now trading near $86 and the 100-hourly simple moving average. Besides, there is a bullish trend line forming with support at $85.50 on the hourly chart of the SOL/USD pair.

On the upside, immediate resistance is near the $87 level. The next major resistance is near the $87.80 level or the 61.8% Fib retracement level of the downward move from the $89.34 swing high to the $85.55 low. The main resistance could be $88.80. A successful close above the $88.80 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 $87.80 resistance, it could continue to move down. Initial support on the downside is near the $85.50 zone. The first major support is near the $84 level.

A break below the $84 level might send the price toward the $82 support zone. If there is a close below the $82 support, the price could decline toward the $80 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 – $85.50 and $84.00.

Major Resistance Levels – $87.80 and $88.80.