Solana Price Analysis: Potential Downside Threats as SOL Faces Resistance

Solana (SOL) is encountering resistance around the $115 mark, signaling potential downside risks for the cryptocurrency.

The price is currently exhibiting bearish signals, and there is a likelihood of a significant decline towards the $68 support level.

Key Points:

1. SOL price initiated a fresh decline after facing resistance at $115 against the US Dollar.
2. The current trading situation sees SOL below $100 and the 100 simple moving average (4 hours).
3. A notable bearish trend line is taking shape, presenting resistance near $92 on the 4-hour SOL/USD chart (data source from Kraken).
4. SOL could extend its downward movement towards the $80 support or even dip to $68.

After reaching a steady upward trajectory, SOL encountered resistance at the $115 level, prompting a reversal. The cryptocurrency has since formed a short-term peak, leading to a downward move below the $105 support.

The decline persisted below the $100 pivotal level, with bears successfully pushing the price beneath the 50% Fibonacci retracement level of the upward move from the $71 swing low to the $108 high. Notably, SOL is displaying bearish indicators around the $115 resistance, mirroring the trends observed in Bitcoin and Ethereum.

SOL is currently trading below $95 and the 100 simple moving average (4 hours). Additionally, a significant bearish trend line is taking shape, presenting resistance near $92 on the 4-hour SOL/USD chart.

In the event of a fresh increase, immediate resistance lies near the $92 level and the aforementioned trend line. The primary resistance is around $100, coupled with the 100 simple moving average (4 hours). The pivotal resistance point is currently at $105. A successful close above this resistance could pave the way for another substantial rally, with the next major resistance situated near $115. Further gains might propel the price towards the $125 level.

However, if SOL fails to rally above the $92 resistance, it may continue its downward trajectory. Initial support on the downside can be found near the $80 level, followed by a more critical support level at $72. A breach below $68 could lead to a further decline towards the $50 support in the near term.

Technical Indicators:

• 4-Hours MACD: The MACD for SOL/USD is gaining momentum in the bearish zone.
• 4-Hours RSI (Relative Strength Index): The RSI for SOL/USD is currently below the 50 level.

Major Levels:

• Major Support Levels: $80, $68.
• Major Resistance Levels: $92, $100, $105.

Disclaimer: This article is for educational purposes only and does not represent the opinions of NewsBTC regarding investment decisions. Readers are encouraged to conduct their own research before making investment choices. Investing in cryptocurrencies involves inherent risks, and all actions taken based on the information provided are at the reader’s own risk.

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