Analysing the Solana Price Drop: What Does It Need?

• The price fell below the $24.00 and $23.50 levels. Bears pushed the price below the 50% Fib retracement level of the rise from the $18.75 low to $24.77 high.
• The first major resistance is near $22.50. A clear move above the $22.50 resistance could send the price towards the $23.50 resistance.
• The initial major support is near $20.30. If there is a close below the $20.30 support, the price might drop towards the $20.00 support.

Solana’s price failed to initiate an upward move above the $25 resistance level: What does SOL price need for a resurgence?

Solana Price Initiates Decline from Resistance Level

After a steady increase, Solana struggled to surpass the $25 resistance area. SOL formed a peak at $24.77 and recently started a new decline.

The price fell below the $24.00 and $23.50 levels. Bears pushed the price below the 50% Fib retracement level of the rise from the $18.75 low to $24.77 high. Additionally, there is a significant bearish trend line forming with resistance near $22.00 on the 4-hour chart of the SOL/USD pair.

SOL is currently trading below $22.00 and the 100 simple moving average (4-hour). Like Bitcoin and Ethereum, SOL is showing bearish signs below $22.00.

However, bulls are currently protecting the $21.00 support. This is close to the 61.8% Fib retracement level of the rise from the $18.75 low to $24.77 high. To the upside, the immediate resistance is near the $22.00 level and close to the trend line.

SOL/USD 4H Chart

The first major resistance is near $22.50. A clear move above the $22.50 resistance could send the price towards the $23.50 resistance. The next major resistance is around the $24.00 level. Further gains could send the price towards the $25.00 level.

Could There Be More Losses in SOL?

If SOL fails to recover above the $22.00 resistance, it might continue to decline. The initial downside support is near $21.00.

The first major support is near $20.30. If there is a close below the $20.30 support, the price might drop towards the $20.00 support. In this case, there is a short-term risk of more downsides, and the price could drop towards the $18.80 support.

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 currently below the 50 level.
• Major Support Levels – $21.00 and $20.30.
• Major Resistance Levels – $22.00, $22.50, and $24.00.

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