Solana (SOL) Price Analysis
Solana’s SOL cryptocurrency is currently maintaining its position above the critical $19.00 support level. Investors are closely monitoring the price as it hovers between $20.20 and $20.50, hoping for a potential upward surge.
In our previous analysis, we discussed the possibility of SOL’s price declining against the US Dollar, and unfortunately, that’s exactly what occurred. The price experienced a steady decrease, slipping below the $20.50 support level as well as the $20.20 mark and the 50-day simple moving average on the 4-hour chart, represented in blue.
However, despite these setbacks, the bulls are putting up a resilient defense around the $19.00 level.
Recent market activity has seen a slight upward correction, with SOL’s price surpassing the 23.6% Fibonacci retracement level of the recent downward movement, which extended from the $22.05 swing high to the $19.03 low.
SOL made two unsuccessful attempts to breach the $20.50 resistance, encountering resistance from bears. Additionally, it faced rejection near the 50% Fibonacci retracement level of the recent downward move, spanning from the $22.05 swing high to the $19.03 low. At present, Solana is trading below the $19.80 level and the 50-day simple moving average on the 4-hour chart, mirroring the trends seen in Bitcoin and Ethereum.
Furthermore, there’s a prominent bearish trend line forming, with resistance at approximately $19.80 on the 4-hour chart. On the upside, the immediate resistance level rests at around $19.70, with the first major resistance located near the trend line.
If SOL can successfully breach this trend line, it may head towards the $20.20 resistance level, ultimately aiming for the primary resistance level of $20.50. A daily close above $20.50 could potentially signal the start of a new uptrend, with the next significant resistance residing near the $22.00 zone. Surpassing $22.00 might set the stage for SOL to target the $25.00 resistance area.
Possible Downside Scenarios
However, on the flip side, SOL could encounter challenges in surpassing the $20.50 resistance level. If this scenario unfolds, the price may continue its downward trajectory, potentially heading towards the critical $19.00 support.
A breach below $19.00 could open the door to further declines, with the price potentially approaching the $18.00 support level. Subsequent losses might pave the way for a further descent to the $17.50 support.
In conclusion, SOL is currently grappling with resistance around the $20.50 mark. The fate of the price hinges on the ability of the bulls to defend the $19.00 support. Should the support falter, the potential for further declines exists. Conversely, if the bulls gain the upper hand, SOL may set its sights on the $22.00 level as the next milestone.