Solana is attempting a recovery wave from the $80 zone. SOL price could struggle to clear the $92 and $94 resistance levels in the near term.
- SOL price started a fresh decline from the $104 resistance against the US Dollar.
- The price is now trading below $95 and the 100 simple moving average (4 hours).
- There was a break above a key bearish trend line with resistance at $85.00 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
- The pair could start another decline if it fails to clear the $92 or $94 resistance.
Solana Price Faces Key Hurdles
Solana price started a fresh decline like Bitcoin and traded below the $95 support zone. There was a clear move below the $92 and $90 support levels.
Finally, SOL price found support near the $79 zone. A low was formed near $78.96, and the price is now attempting a recovery wave like Ethereum. There was a move above the $84 resistance. The price climbed above the 23.6% Fib retracement level of the downward move from the $103.40 swing high to the $78.96 low.
Besides, there was a break above a key bearish trend line with resistance at $85.00 on the 4-hour chart of the SOL/USD pair. It is now trading below $95 and the 100 simple moving average (4 hours).
Immediate resistance is near the $91.20 level. It is close to the 50% Fib retracement level of the downward move from the $103.40 swing high to the $78.96 low. The first major resistance is near the $94 level or the 100 hourly SMA.
Source: SOLUSD on TradingView.com
The main resistance is now near $98. A successful close above the $98 resistance could set the pace for another major increase. The next key resistance is near $112. Any more gains might send the price toward the $120 level.
Another Decline in SOL?
If SOL fails to rally above the $91.20 resistance, it could start another decline. Initial support on the downside is near the $84.80 level.
The first major support is near the $80.00 level, below which the price could test $75.00. If there is a close below the $68 support, the price could decline toward the $72.50 support in the near term.
Technical Indicators
4-Hours MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $84.80, and $80.00.
Major Resistance Levels – $91.20, $94.00, and $98.00.
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