Solana started a downside correction from $24 against the US Dollar. SOL price might start a fresh increase if it stays above the $21.50 support.
- SOL price is correcting lower from the $24 resistance against the US Dollar.
- The price is now trading below $23.50 and the 100 simple moving average (4 hours).
- There was a break above a major bearish trend line with resistance near $22.50 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
- The pair could start a fresh increase if it stays above the $21.50 support.
Solana Price Remains Supported
This past week, Solana’s price formed a base above the $20.50 level. SOL started a fresh increase and was able to clear the $21.50 resistance. There was a break above a major bearish trend line with resistance near $22.50 on the 4-hour chart of the SOL/USD pair.
However, the bears were active near the $24 resistance. A high is formed near $23.99 and the price is now correcting gains, similar to Bitcoin and Ethereum.
SOL declined below the $23.50 and $23.00 levels. There was a drop below the 50% Fib retracement level of the upward move from the $20.39 swing low to the $23.99 high. It is now trading below $23.50 and the 100 simple moving average (4 hours).
Source: SOLUSD on TradingView.com
On the upside, immediate resistance is near the $22.50 level. The next major resistance is near the $23 zone and the 100 simple moving average (4 hours). A close above the $23 level could resend the price toward the $24 resistance zone. Any more gains might send the price toward the $25 level.
More Losses in SOL?
If SOL fails to clear the $23 resistance, it could continue to move down. Initial support on the downside is near the $21.75 level or the 61.8% Fib retracement level of the upward move from the $20.39 swing low to the $23.99 high.
The first major support is near the $21.50 level, below which the bears might gain strength. In the stated case, the price may perhaps decline toward the $20.40 support. The next major support is near the $20 level.
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 – $21.75, $21.50, and $20.00.
Major Resistance Levels – $22.50, $23, and $24.
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Author: Aayush Jindal
