Solana, one of the leading cryptocurrencies, has been experiencing a significant decline in price after struggling to clear the $115 resistance level. With several bearish signs, SOL price is expected to decline further towards the $68 support level.
After a period of steady increase, the bulls of Solana faced a hurdle in surpassing the $115 resistance. Consequently, SOL price formed a short-term top and embarked on a fresh decline, falling below the $105 support level. This downward trend continued with a steady decline below the pivotal $100 level.
The current price of SOL is beneath $95, and it is also trading below the 100 simple moving average (4 hours). Moreover, a key bearish trend line is forming with resistance near $92 on the 4-hour chart of the SOL/USD pair. These resistance levels indicate a challenging path for SOL to recover its previous position.
In the event of a fresh increase, the immediate resistance is expected near the $92 level and the trend line. The first major resistance that SOL price needs to overcome is close to the $100 level, followed by the 100 simple moving average (4 hours). However, the main resistance level lies at $105, marking a significant milestone for SOL to achieve a major rally. If successful, the next key resistance level is near $115, potentially paving the way for a rise towards $125.
If SOL fails to rally above the $92 resistance, it is highly likely that the downward momentum will persist. The initial support on the downside can be found near the $80 level. However, breaching this support could lead to further decline towards the first major support level at $72. In a worst-case scenario, a close below the $68 support may trigger a decline towards the $50 support in the near term.
Analyzing the technical indicators, the 4-hour Moving Average Convergence Divergence (MACD) for SOL/USD is gaining pace in the bearish zone. Additionally, the Relative Strength Index (RSI) for SOL/USD is below the 50 level, indicating a predominantly bearish sentiment in the market.
The decline of Solana’s price, as indicated by various bearish signs, suggests a further downward movement towards the $68 support level. With key resistance levels hindering a potential recovery, SOL’s journey to regain its value will be steep. However, it is important to note that investing in cryptocurrencies carries risks, and readers are advised to conduct their own research before making any investment decisions. With the understanding that this article is for educational purposes only, it is crucial to approach cryptocurrency investments with caution and use the provided information at your own risk.
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