Solana (SOL) Tests Support After Dip — Bounce or Breakdown Ahead?

Solana started a fresh decline from the $160 zone. SOL price is now consolidating losses and might decline further below the $145 level.

• SOL price started a fresh decline from the $160 resistance zone against the US Dollar.
• The price is now trading below $155 and the 100-hourly simple moving average.
• There was a break below a bullish trend line with support at $150 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The pair could start a fresh increase if it clears the $152 resistance zone.

Solana price failed to continue higher above the $160 level and started a fresh decline, like Bitcoin and Ethereum. SOL gained pace and traded below the $155 support level.

There was a break below a bullish trend line with support at $150 on the hourly chart of the SOL/USD pair. The pair even traded below the $148 level. A low was formed near $145 and the price recently started a consolidation phase. It tested the 23.6% Fib retracement level of the recent decline from the $158 swing high to the $145 low.

Solana is now trading below $150 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $150 level. The next major resistance is near the $152 level. It is close to the 50% Fib retracement level of the recent decline from the $158 swing high to the $145 low.

The main resistance could be $155. A successful close above the $155 resistance zone could set the pace for another steady increase. The next key resistance is $160. Any more gains might send the price toward the $165 level.

If SOL fails to rise above the $152 resistance, it could start another decline. Initial support on the downside is near the $145 zone. The first major support is near the $142 level.

A break below the $142 level might send the price toward the $130 zone. If there is a close below the $130 support, the price could decline toward the $125 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 – $145 and $142.

Major Resistance Levels – $152 and $155.