Solana started a new decline below the $162 zone. The SOL price is now trying to recover and is facing obstacles near the $166 zone.
- The price of SOL started a new decline below $165 and $162 against the US dollar.
- The price is now trading below $165 and the 100-hour simple moving average.
- There was a break above the key bearish trend line with resistance at $155 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The price could continue to rise if it crosses $165 and $166.
The price of Solana is trying a wave of recovery
The price of Solana failed to hold steady above $175 and started a new decline, like Bitcoin and Ethereum. SOL fell below the $170 and $165 support levels.
The price gained bearish momentum below $160. The lowest level was formed at $145, and the price recently started a wave of recovery. There was a move above the 23.6% Fib retracement level of the downside move from the $188 swing high to the $145 low.
In addition, there was a break above the key bearish trendline with resistance at $155 on the hourly chart of the SOL/USD pair. Solana is now trading below $165 and the 100-hour simple moving average.
On the downside, immediate resistance is near the $165 level. The next major resistance is near the $166 level and the 50% Fib retracement level of the $188 swing high to $145 low. The main resistance could be $172. A successful close above the $172 resistance zone could set the pace for another steady rally. The next key resistance is $180. Any further gains could send the price towards the $188 level.
Another drop in SOL?
If SOL fails to rise above the $166 resistance, it could continue to move lower. Initial support on the downside is near the $160 zone. The first major support is near the $155 level.
A break below the $155 level could send the price towards the $148 support zone. If there is a close below the $148 support, the price could fall towards the $142 zone in the near term.
Technical indicators
Hourly MACD – MACD for SOL/USD loses a step in the bearish zone.
Hourly RSI (Relative Strength Index) – RSI for SOL/USD is above the 50 level.
Major support levels – $155 and $148.
Main resistance levels – 165 and 166 dollars.
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