Solana (SOL) Displays Signs of a Downturn—Will Additional Declines Follow?

Solana has begun a new downward trend from the $188 range. The SOL price is currently dropping and may fall further beneath the $170 threshold.

• The SOL price has initiated a decline from the $188 resistance level against the US Dollar.
• Currently, the price is trading under $180 and below the 100-hour simple moving average.
• A bearish trend line is forming with resistance at $176 on the hourly chart for the SOL/USD trading pair.
• If the price clears the $180 resistance level, the pair may begin to rise again.

Solana Experiences a Price Drop

After establishing a base above the $170 support, Solana began a minor rally, similar to Bitcoin and Ethereum. SOL advanced past the $172 and $175 resistance levels.

Subsequently, the price reached the $188 resistance before declining to $170. A low formed near $170, after which the price attempted another upward move, successfully surpassing the $172 mark. It also exceeded the 23.6% Fibonacci retracement level for the recent drop from the $188 high to the $170 low.

Currently, Solana is trading below $180 and under the 100-hour simple moving average. Additionally, a bearish trend line is becoming apparent with resistance at $176 on the SOL/USD hourly chart.

On the upside, the price encounters resistance close to the $176 mark. The next significant resistance is around the $180 level, with potential resistance at $185. A successful breach of the $185 resistance could pave the way for sustained gains, with the next key barrier at $192. Continued upward momentum might push the price toward the $200 mark.

Is Another Decline on the Horizon for SOL?

If SOL does not break past the $176 resistance, it may enter another downward phase. The initial support level on the downside is around $172, with the first significant support at the $170 mark.

A dip below the $170 level could bring the price toward the $165 zone and the trend line. If it closes below the $165 support, the price may slide further toward the $160 support level in the short term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is gaining strength in the bearish territory.

Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is positioned beneath the 50 mark.

Major Support Levels – $172 and $170.

Major Resistance Levels – $176 and $180.