Solana (SOL) Weakens Again — Break Below $200 Opens Door For Further Decline

Solana failed to stay above $200 and corrected gains. SOL price is now trading below $200 and might decline further if it dips below $192.

• SOL price started a downside correction below $200 against the US Dollar.
• The price is now trading below $198 and the 100-hourly simple moving average.
• There was a break below a bullish trend line with support at $198 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The pair could extend losses if it dips below the $192 zone.

Solana price started a decent increase after it settled above the $192 zone, beating Bitcoin and Ethereum. SOL climbed above the $198 level to enter a short-term positive zone.

The price even smashed the $200 resistance. A high was formed near $205 and the price recently corrected some gains. There was a move below the 23.6% Fib retracement level of the upward wave from the $177 swing low to the $205 high.

Besides, there was a break below a bullish trend line with support at $198 on the hourly chart of the SOL/USD pair. Solana is now trading below $198 and the 100-hourly simple moving average.

On the upside, the price is facing resistance near the $198 level. The next major resistance is near the $200 level. The main resistance could be $205. A successful close above the $205 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 $220 level.

If SOL fails to rise above the $200 resistance, it could start another decline. Initial support on the downside is near the $192 zone and the 50% Fib retracement level of the upward wave from the $177 swing low to the $205 high. The first major support is near the $188 level.

A break below the $188 level might send the price toward the $180 support zone. If there is a close below the $180 support, the price could decline toward the $166 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 – $192 and $188.

Major Resistance Levels – $200 and $205.