Solana corrects gains from the $25 resistance against the US dollar. SOL price could accelerate lower if there is a break below the $21 support.
- SOL price started declining again after failing to clear the $25 resistance against the US dollar.
- The price is now trading below $22.00 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance around $22.00 on the 4-hour chart of the SOL/USD pair (Kraken data source).
- The pair could break the USD 21 support and accelerate towards USD 18.80.
Solana Price visits key support
After a steady rise, Solana struggled to break the $25 resistance zone. SOL peaked at $24.77 and recently started a new decline.
There was a move below the USD 24.00 and USD 23.50 levels. The bears pushed the price below the 50% Fib retracement level of the upward move from the $18.75 swing low to the $24.77 high. There is also a major bearish trendline forming with resistance around $22.00 on the 4-hour chart of the SOL/USD pair.
SOL is now trading below $22.00 and the 100 simple moving average (4 hours). It also shows bearish signs below $22 like Bitcoin and Ethereum.
However, the bulls are now protecting the $21.00 support. It is close to the 61.8% Fib retracement level of the upward move from the $18.75 swing low to the $24.77 high. On the upside, immediate resistance is near the $22.00 level and trendline.
Source: SOLUSD on TradingView.com
The first major resistance is around the $22.50 level. A clear move above the USD 22.50 resistance could send the price towards the USD 23.50 resistance. The next major resistance is near $24.00. Any further gains could send the price towards the USD 25.00 level.
Lose more in SOL?
If SOL fails to recover above the USD 22.00 resistance, the price could continue to decline. The initial downside support is near the $21.00 level.
The first major support is near the $20.30 level. If there is a close below the USD 20.00 support, the price could fall towards the USD 20.00 support. In the mentioned case, there is a risk that more downsides will occur towards the USD 18.80 support in the short term.
Technical indicators
4-hour MACD – The MACD for SOL/USD is gaining speed in the bearish zone.
4-hour RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major support levels – USD 21.00 and USD 20.30.
Major resistance levels – $22.00, $22.50 and $24.00.
