Solana (SOL) Clings to Key Support: Is a Bounce Imminent?

Solana trimmed gains and tested the $132 support. SOL price is consolidating and might aim for a fresh increase above the $140 resistance zone.

• SOL price started a fresh decline below the $145 zone against the US Dollar.
• The price is now trading near $142 and the 100-hourly simple moving average.
• There was a break above a short-term bearish trend line with resistance at $136 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The pair could start a recovery wave if it stays above the $132 support zone.

Solana Price Revisits $132

Solana price started a fresh decline from the $162 resistance like Bitcoin and Ethereum. SOL declined below the $155 and $150 support levels. It even declined below $142.

However, the bulls were active above the $132 support. A low was formed at $133.17 and the price is now consolidating losses. There was a move above the $135 level. The price climbed above the 23.6% Fib retracement level of the recent decline from the $1482 swing high to the $133 low.

There was also a break above a short-term bearish trend line with resistance at $136 on the hourly chart of the SOL/USD pair. Solana is now trading below $142 and the 100-hourly simple moving average.

On the upside, the price is facing resistance near the $140 level. The next major resistance is near the $142 level. It is close to the 61.8% Fib retracement level of the recent decline from the $1482 swing high to the $133 low. The main resistance could be $148.

A successful close above the $148 and $150 resistance levels could set the pace for another steady increase. The next key resistance is near $155. Any more gains might send the price toward the $162 level.

More Downsides in SOL?

If SOL fails to rise above the $140 resistance, it could start another decline. Initial support on the downside is near the $135 level. The first major support is near the $132 level.

A break below the $132 level might send the price toward the $120 zone. If there is a close below the $120 support, the price could decline toward the $112 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is losing pace in the bearish zone.

Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Major Support Levels – $135 and $132.

Major Resistance Levels – $140 and $148.

Source