Solana Price Correction Overview
Solana (SOL) recently surged towards $80 before encountering resistance from bears. Currently, the SOL price is undergoing a correction, but bulls may find support near the crucial $65 level.
Technical Analysis
The SOL price initiated a significant rally above the $65 resistance against the US Dollar. Presently, it is trading above $65 and the 100 simple moving average (4 hours).
- A key bullish trend line is forming with support near $65.00 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
- The pair might experience further downside acceleration if it breaks below the $55.00 support level.
Price Movement Details
Over the past few days, Solana witnessed a substantial rally above $60, gaining momentum after settling above $65, in line with the movements of Bitcoin and Ethereum.
The bulls drove the price above $72, reaching a high near $77.72. However, a downside correction followed, with the price dipping below $72 and testing $70.
- The 23.6% Fib retracement level of the upward move from the $53.50 swing low to the $77.72 high was breached by the bears.
- SOL is still trading above $66 and the 100 simple moving average (4 hours).
- A key bullish trend line with support near $65.00 on the 4-hour chart acts as a significant level.
Resistance and Support Levels
On the upside, immediate resistance is anticipated near the $72.00 level, with the first major resistance at $75.00. The primary resistance is at $78.00, and a successful close above this level may pave the way for a larger increase.
Should SOL fail to recover above the $72.00 resistance, potential downside movement may occur. Initial support lies near the $68.00 level, followed by the $65.00 level or the trend line.
If the $62 support is breached, the price could decline towards the $55 support in the near term.
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 and Resistance Levels
- Major Support Levels – $65.00, and $62.00.
- Major Resistance Levels – $72.00, $75.00, and $78.00.
