Solana Price Continues to Drop Amid Bearish Momentum
Solana, the cryptocurrency, is experiencing a bearish trend as its price falls below $20 against the US Dollar. Analysts predict that SOL price may drop further to $16.50 or even $15.00.
- SOL price is displaying bearish signs, struggling to surpass the $20.00 and $20.50 levels against the US Dollar.
- Currently, the price is trading below $20 and the 100 simple moving average (4 hours).
- An important bearish trend line is forming, indicating resistance near $19.20 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
- If the price closes below the $17.80 support level, the pair could continue to decline.
Solana Price Drops Further
In recent days, Solana’s price attempted to break the $22.00 resistance multiple times. However, SOL lacked the strength to surpass this level.
Consequently, a bearish reaction occurred, leading to a drop below the $21.20 support level, similar to Bitcoin and Ethereum. Additionally, FTX’s news about a potential selling of SOL is adding pressure on the bulls. The price has gained bearish momentum and is now trading below $20.00.
Support was found near $17.80, resulting in a low of around $17.78. Currently, the price is consolidating its losses and trading below $20 and the 100 simple moving average (4 hours).
Furthermore, a significant bearish trend line is forming with resistance near $19.20 on the 4-hour chart of the SOL/USD pair. The immediate resistance on the upside is around the $18.50 level or the 23.6% Fib retracement level from the $20.59 swing high to the $17.78 low.
Source: SOLUSD on TradingView.com
The first major resistance level is near $19.20 or the trend line. The next key resistance is around the 76.4% Fib retracement level at $20.00, from the downward move between the $20.59 swing high and the $17.78 low. If the price successfully breaks above $20.00, it may reach the $21.20 resistance level. Further gains could push the price towards $22.00.
More Losses Expected for SOL?
If SOL fails to surpass the $19.20 resistance level, it is likely to continue its downward movement. The initial support on the downside is near $17.80.
The first major support level is around $17.20. If the price closes below the $17.20 support, it may decline further towards the $16.50 support level. In this scenario, there is a risk of additional losses towards the $15.00 support level in the near future.
4-Hours MACD – The MACD for SOL/USD is indicating an increasing bearish trend.
4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $17.80 and $17.20.
Major Resistance Levels – $19.20, $20.00, and $22.00.
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