Solana (SOL) Below $80 Risks Restarting A Brutal Downtrend

Solana failed to settle above $90 and remained in a range. SOL price is now facing hurdles near $90-$92 and might decline again below $80.

• SOL price started a decent recovery wave above $75 and $80 against the US Dollar.
• The price is now trading above $85 and the 100-hourly simple moving average.
• There is a key bearish trend line forming with resistance at $88 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could continue to move up if it clears $88 and $92.

Solana Price Faces Resistance

Solana price remained stable and started a decent recovery wave from $68, like Bitcoin and Ethereum. SOL was able to climb above the $75 level.

There was a move above the 50% Fib retracement level of the downward move from the $106 swing high to the $68 low. However, the bears are active below $90. There is also a key bearish trend line forming with resistance at $88 on the hourly chart of the SOL/USD pair.

Solana is now trading above $80 and the 100-hourly simple moving average. On the upside, immediate resistance is near the $88 level and the trend line.

The next major resistance is near the $92 level and the 61.8% Fib retracement level of the downward move from the $106 swing high to the $68 low. The main resistance could be $95. A successful close above the $95 resistance zone could set the pace for another steady increase. The next key resistance is $102. Any more gains might send the price toward the $112 level.

Another Decline In SOL?

If SOL fails to rise above the $92 resistance, it could continue to move down. Initial support on the downside is near the $84 zone. The first major support is near the $80 level.

A break below the $80 level might send the price toward the $72 support zone. If there is a close below the $72 support, the price could decline toward the $68 zone in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is gaining pace in the bullish zone.

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

Major Support Levels – $84 and $80.

Major Resistance Levels – $88 and $92.