Solana (SOL) Teeters on the Edge: Is a Steep Decline Next?

Solana failed to clear the $205 resistance and trimmed gains. SOL price is now below $192 and showing a few bearish signs.

• SOL price started a fresh decline after it failed to stay above $200 against the US Dollar.
• The price is now trading below $192 and the 100-hourly simple moving average.
• There is a connecting bearish trend line forming with resistance at $190 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The pair could start a fresh increase if the bulls clear the $192 zone.

Solana price struggled to clear the $200-$205 zone and started a fresh decline, like Bitcoin and Ethereum. There was a move below the $200 and $192 support levels.

The price even dipped below the $185 support. A low was formed at $182.20, and the price is now consolidating losses below the 23.6% Fib retracement level of the downward move from the $223 swing high to the $182 low.

Solana is now trading below $192 and the 100-hourly simple moving average. There is also a connecting bearish trend line forming with resistance at $190 on the hourly chart of the SOL/USD pair. On the upside, the price is facing resistance near the $190 level.

The next major resistance is near the $192 level. The main resistance could be $200 or the 50% Fib retracement level of the downward move from the $223 swing high to the $182 low. A successful close above the $200 resistance zone could set the pace for another steady increase. The next key resistance is $212. Any more gains might send the price toward the $225 level.

If SOL fails to rise above the $192 resistance, it could start another decline. Initial support on the downside is near the $182 level. The first major support is near the $180 level.

A break below the $180 level might send the price toward the $175 zone. If there is a close below the $175 support, the price could decline toward the $162 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 – $182 and $180.

Major Resistance Levels – $190 and $192.