Solana initiated a downward correction beneath the $230 area. The SOL price is now regaining its losses but is encountering challenges close to the $220 mark.
- The SOL price commenced a new uptick after it tested the $204 region against the US Dollar.
- The price is currently trading below $230 and below the 100-hourly simple moving average.
- A significant bearish trend line is taking shape with resistance at $220 on the hourly chart for the SOL/USD pair (data sourced from Kraken).
- The pair might initiate a new climb if the bulls surpass the $220 region.
Solana Price Aims for Upside Breakthrough
The Solana price established a support foundation and began a new rise from the $204 level, similar to Bitcoin and Ethereum. There was a notable rise past the $210 and $212 resistance levels.
There was an upswing above the 23.6% Fibonacci retracement level of the decline from the $243 swing peak to the $203 low. Nonetheless, the price is currently encountering several obstacles near $220. Solana is now trading above $218 and the 100-hourly simple moving average.
On the upside, the price faces resistance around the $220 mark. Additionally, there is a critical bearish trend line forming with resistance at $220 on the hourly chart of the SOL/USD pair.
The subsequent significant resistance is close to the $224 mark, or the 50% Fibonacci retracement level of the decline from the $243 swing peak to the $203 low. The primary resistance might be $228. A successful close above the $228 resistance could pave the way for another steady rise. The next critical resistance is $235. Further gains could propel the price toward the $250 mark.
Is Another Drop Imminent for SOL?
If SOL does not manage to breach the $220 resistance, it could potentially start another decline. Initial support on the downside lies near the $212 level. The first major support level is around the $205 mark.
A breach below the $205 level may push the price towards the $200 zone. If there is a close beneath the $200 support, the price could drop towards the $188 support level in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining momentum in the bullish territory.
Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 mark.
Key Support Levels – $212 and $205.
Key Resistance Levels – $220 and $228.