Solana Price Correction Overview
Solana (SOL) recently experienced a rally surpassing the $65 resistance against the US Dollar. However, the current trend suggests a correction, and there’s a possibility of the price sliding below the critical $50 support level.
Technical Analysis
SOL initiated a significant uptrend, breaking above the $60 resistance before encountering bearish pressure against the US Dollar. As of now:
- The price is trading below $60 and the 100 simple moving average (4 hours).
- A short-term rising channel with support near $58.00 on the 4-hour chart of the SOL/USD pair has been breached.
- There is potential for the pair to accelerate lower, possibly breaching the $55.00 support zone in upcoming sessions.
Recent Developments
Over the past few days, SOL witnessed a robust rally above the $60 level, gaining momentum after settling above $60 and outperforming Bitcoin and Ethereum. The price surged above $65, reaching a high near $68.16, but has since undergone a downside correction, testing $52 and forming a low at $51.23. Currently, the price is consolidating within a range.
Despite the correction, there’s immediate resistance near the $59.50 level, close to the 50% Fib retracement level of the downward move from the $68.16 swing high to the $51.23 low. The $60.00 level is the first major resistance, with the main hurdle at $62.00 or the 61.8% Fib retracement level. A successful close above $62.00 could pave the way for a larger increase, targeting the key resistance at $68.50 and potentially pushing the price towards $72.00.
Potential Downside
If SOL fails to recover above the $60.00 resistance, there is a risk of further downward movement. Key support levels include:
- $55.00
- $51.20
A close below the critical $50 support may lead to a decline towards the $45 support in the near term.
Technical Indicators
- 4-Hours MACD – The MACD for SOL/USD is losing pace in the bullish zone.
- 4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Key Levels
- Major Support Levels – $55.00, and $51.20.
- Major Resistance Levels – $60.00, $62.00, and $68.50.
