Solana (SOL) has recently experienced a downward correction after failing to break above the $162 resistance zone. The price has now retraced to the $140 support level, raising questions about whether this level can sustain a potential rebound.
Currently, SOL is trading below both the $155 and $150 levels, as well as below the 100-hour Simple Moving Average (SMA). On the hourly chart for SOL/USD, the price has broken below a key rising channel with support near $154, indicating increased selling pressure.
For SOL to initiate a fresh upward move, it must successfully break through the $150 resistance area. This level is critical for determining the next short-term trend direction.
Understanding Solana’s Recent Price Movement
After being rejected near the $162 mark, Solana began a corrective decline. The drop accelerated once SOL broke below the $155 support level, aligning with broader bearish momentum across major cryptocurrencies like Bitcoin and Ethereum.
The breakdown below the ascending channel on the hourly chart signaled a shift in market sentiment. SOL dipped to as low as $141.29, testing the $140 support zone, where it is currently consolidating its losses.
At the time of writing, SOL remains well below the $150 psychological barrier and the 100-hour SMA, suggesting that buyers are not yet in full control.
Key Resistance and Support Levels to Watch
On the upside, Solana faces immediate resistance near the $145 level, which coincides with the 23.6% Fibonacci retracement level of the recent decline from the $158 high to the $141 low.
The next major resistance sits near $150. This level represents the 50% Fibonacci retracement of the same downward move and is reinforced by the 100-hour SMA. A clear break above $150, especially with strong volume, could set the stage for a sustained recovery toward $155 and possibly a retest of the $162 high.
Conversely, if SOL fails to reclaim the $150 resistance, further downside becomes likely. Initial support rests near $142, with more significant support at $140. A break below $140 could trigger a steeper drop toward $132. In a worst-case scenario, a close below $132 might lead to a test of the $124 support zone.
Technical Indicators Reflect Bearish Sentiment
- Hourly MACD: The MACD for SOL/USD is currently in the bearish zone and is losing momentum, indicating that selling pressure may be easing but hasn’t yet reversed.
- Hourly RSI: The Relative Strength Index is below the 50 level, reflecting bearish sentiment. A move above 50 could signal strengthening buying interest.
These indicators suggest that while the bearish trend is still intact, the market may be approaching oversold conditions, which could provide an opportunity for a rebound if buyer confidence returns.
Frequently Asked Questions
What caused Solana’s price to drop to $140?
Solana's decline to $140 resulted from a failure to break above the $162 resistance level, combined with broader market weakness across major cryptocurrencies. Technical breakdowns below key support levels accelerated the selling pressure.
Is $140 a strong support level for Solana?
The $140 level has historically acted as both support and resistance, making it a psychologically important price zone. While it may provide temporary support, a break below could lead to further declines toward $132 or lower.
What does Solana need to start a recovery?
For a sustained recovery, SOL needs to break and hold above the $150 resistance level. This would require increased buying volume and positive market sentiment, potentially fueled by broader cryptocurrency market strength or positive Solana ecosystem developments.
Are the technical indicators showing any signs of reversal?
Currently, both the MACD and RSI remain in bearish territory, though the MACD is showing signs of slowing momentum. Traders should watch for improving RSI readings above 50 and MACD crossovers into bullish territory for reversal confirmation.
What are the major support levels below $140?
If $140 fails to hold, the next significant support levels are found near $132 and $124. These levels could provide potential entry points for long-term investors believing in Solana's fundamentals.
Should I consider buying SOL at $140?
While $140 may present a potential buying opportunity for some investors, it's essential to consider your risk tolerance and market conditions. Always conduct thorough research and consider exploring more strategies for risk management before making investment decisions.
The current market structure suggests that Solana is at a critical juncture. The $140 support level will likely determine whether the cryptocurrency can stabilize and attempt a recovery or continue its downward trajectory. Traders and investors should monitor price action around this key level closely, along with broader market cues, for directional clarity.
Remember that cryptocurrency markets are highly volatile, and technical levels can change rapidly. For those looking to stay updated with real-time analysis and trading tools, consider viewing real-time tools that can help inform your decision-making process.