Solana (SOL) Trims Recent Gains, Market Sentiment Turns Fragile Again

Solana failed to stay above $86 and corrected some gains. SOL price is now consolidating and might aim for another increase if it stays above $82.50.

• SOL price started a downside correction below $85 against the US Dollar.
• The price is now trading below $85 and the 100-hourly simple moving average.
• There is a declining channel forming with support at $82.50 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The pair could extend losses if it dips below the $82.50 zone.

Solana price failed to stay above $86 and started a downside correction, like Bitcoin and Ethereum. SOL dipped below $85 and $84 to enter a short-term bearish zone.

There was a move below the 50% Fib retracement level of the upward wave from the $81.37 swing low to the $87.39 high. The price even tested the $83.65 support. Besides, there is a declining channel forming with support at $82.50 on the hourly chart of the SOL/USD pair.

Solana is now trading below $85 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $85.50 level. The next major resistance is near the $86 level. The main resistance could be $87.40. A successful close above the $87.40 resistance zone could set the pace for another steady increase. The next key resistance is $92. Any more gains might send the price toward the $95 level.

If SOL fails to rise above the $86 resistance, it could start another decline. Initial support on the downside is near the $83.50 zone and the 61.8% Fib retracement level of the upward wave from the $81.37 swing low to the $87.39 high. The first major support is near the $82.50 level.

A break below the $82.50 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 $75 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 – $83.50 and $82.50.

Major Resistance Levels – $85.50 and $87.40.