Solana Drops But It’s Too Early to Say Bulls Have Given Up

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.