Solana, the popular cryptocurrency, experienced a significant rally as its price surged above the $65 resistance level against the US Dollar. This upward move was met with excitement by investors who were optimistic about the future of SOL. However, as with any investment, the bullish momentum was short-lived, and the price is now facing a corrective phase.
After surpassing $65, SOL price started to correct its gains and is now at risk of sliding below the $50 support level. The price is currently trading below $60 and the 100 simple moving average (4 hours). This correction is a cause for concern among investors, as it indicates a possible trend reversal.
One key indicator of the potential downward move is the break below a short-term rising channel with support near $58.00 on the 4-hour chart of the SOL/USD pair. This break suggests that the bears are gaining control and the price may continue to decline. If this downward momentum persists, the pair could accelerate lower, potentially falling below the $55.00 support zone in the coming sessions.
In the past few days, Solana experienced a major rally above the $60 level, outperforming both Bitcoin and Ethereum. The price even reached a high of $68.16 before the correction began. Currently, the price is consolidating within a range, with a low of $51.23. This consolidation phase indicates indecision in the market, as buyers and sellers struggle for control.
As the price continues to fluctuate, it is important to analyze the key resistances and supports. Immediate resistance is near the $59.50 level, which is close to the 50% Fib retracement level of the downward move from the $68.16 swing high to the $51.23 low. The first major resistance is near the $60.00 level, which the price is currently struggling to surpass. If SOL manages to break above this resistance, it could pave the way for further gains.
On the other hand, if the price fails to recover above the $60.00 resistance, it could continue to move down. Initial support on the downside is near the $55.00 level, followed by the first major support at around $51.20. If the price falls below this level, it may test the $50 support, which is a critical point. A close below $50 would signal a further decline, potentially pushing the price toward the $45 support in the near term.
Analyzing the technical indicators can provide additional insight into the current situation. The 4-hour MACD (Moving Average Convergence Divergence) for SOL/USD is losing pace in the bullish zone, indicating a potential slowdown in the upward momentum. The 4-hour RSI (Relative Strength Index) is below the 50 level, further confirming the bearish sentiment in the market.
Solana’s recent rally above the $65 resistance level was met with excitement by investors. However, the price is now facing a corrective phase, with a potential slide below the $50 support level. The break in the rising channel and the technical indicators suggest that bears are gaining control of the market.
While there is still a possibility for SOL to rebound and overcome the resistances, investors should exercise caution and monitor the price closely. The next key resistance levels to watch are $60.00, $62.00, and $68.50. Conversely, if the price continues to decline, the major support levels to keep an eye on are $55.00 and $51.20.
As with any investment, it is important to do thorough research and seek professional advice before making any decisions. The cryptocurrency market is highly volatile, and prices can change rapidly. Only invest what you can afford to lose and make informed choices based on careful analysis of the market conditions.
