Solana (SOL) at Crossroads — Bounce Likely If $142 Remains Intact

Solana started a fresh decline and retested the $145 support zone. SOL price is now recovering and might aim for a fresh increase above the $150 zone.

• SOL price started a fresh decline after it failed to clear $160 against the US Dollar.
• The price is now trading below $150 and the 100-hourly simple moving average.
• There was a break above a key bearish trend line with resistance at $147 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The pair could start a fresh increase if it clears the $152 resistance zone.

Solana Price Trims Gains

Solana price struggled to continue higher above $160 and started a fresh decline, like Bitcoin and Ethereum. SOL declined below the $155 and $152 support levels.

It even dipped below $150 and tested the $145 zone. A low was formed at $144 and the price is now correcting some losses. There was a move above the 23.6% Fib retracement level of the downward move from the $160 swing high to the $144 low.

Besides, there was a break above a key bearish trend line with resistance at $147 on the hourly chart of the SOL/USD pair. Solana is now trading below $150 and the 100-hourly simple moving average.

On the upside, the price is facing resistance near the $150 level. The next major resistance is near the $152 level. It is close to the 50% Fib retracement level of the downward move from the $160 swing high to the $144 low. The main resistance could be $155. A successful close above the $155 resistance zone could set the pace for another steady increase. The next key resistance is $160. Any more gains might send the price toward the $165 level.

Another Decline in SOL?

If SOL fails to rise above the $150 resistance, it could start another decline. Initial support on the downside is near the $145 zone. The first major support is near the $142 level.

A break below the $142 level might send the price toward the $136 zone. If there is a close below the $136 support, the price could decline toward the $125 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is losing pace in the bearish zone.

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

Major Support Levels – $145 and $142.

Major Resistance Levels – $152 and $155.