Solana has recently experienced a decline, dropping below the crucial $175 support level. Currently, the SOL price is nearing the $165 support area, where it may find a temporary rebound in the near future.
The downturn began after Solana faced difficulties breaking through the $185 resistance level against the US Dollar. As the price dipped below $172, it also fell below the 100-hour simple moving average. A significant bearish trend line has emerged, indicating resistance at $172 on the hourly chart for the SOL/USD pair. For a potential recovery, the price must remain above the $165 and $162 support zones.
Following the unsuccessful attempt to breach $185, the price has slid down past both the $180 and $175 support levels. Sellers drove the asset beneath $172, which resulted in testing the $165 support. A low was established at this level, and Solana is now in a phase of consolidation, trading below the 23.6% Fibonacci retracement level of the downward trend from the $183 peak to the recent low. Resistance is established at around $170, with the next significant barrier occurring near $172.
For Solana to initiate a stronger upward momentum, a close above the $175 resistance level is crucial, as it could pave the way for future increases. The subsequent resistance level to watch is $182, with further gains potentially pushing the price up to $185.
However, if Solana struggles to surpass the $170 resistance, it may continue to decline, with initial support resting at $165. A break below $162 could lead to a further drop towards the $150 range. If the price closes below that level, it may fall as low as $135 in the near future.
Technical indicators show that the MACD for SOL/USD is increasingly bearish, while the RSI remains below the neutral 50 level. The significant support levels to monitor are at $165 and $162, while resistance levels stand at $170 and $172.
