Solana gained bearish momentum and traded below $20 against the US Dollar. SOL price might now struggle to recover above the $20 and $21 resistance levels.
- SOL price is showing bearish signs below the $20.50 resistance against the US Dollar.
- The price is now trading below $19.80 and the 100 simple moving average (4 hours).
- There is a major bearish trend line forming with resistance near $19.90 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
- The pair could recover but upsides might be limited above $20.
Solana Price Extends Losses
This past week, Solana’s price started a fresh decline from well above $21. SOL gained bearish momentum and was able to trade below the $20.50 support.
The bears gained strength and pushed the price below the $20 support. The price is now showing bearish signs below $20, similar to Bitcoin and Ethereum. A low is formed near $18.70 and the price is now consolidating losses.
SOL is now trading below $19.80 and the 100 simple moving average (4 hours). There is also a major bearish trend line forming with resistance near $19.90 on the 4-hour chart of the SOL/USD pair. On the upside, immediate resistance is near the $19.80 level and the trend line.
The next major resistance is near the $20 zone or the 50% Fib retracement level of the downward move from the $21.51 swing high to the $18.70 low. The main resistance is now forming near the $20.50 level and the 100 simple moving average (4 hours).
Source: SOLUSD on TradingView.com
The 61.8% Fib retracement level of the downward move from the $21.51 swing high to the $18.70 low is also near $20.50. A close above the $20.50 level could resend the price toward the $21.50 resistance zone. Any more gains might send the price toward the $22 level.
More Losses in SOL?
If SOL fails to clear the $20.50 resistance, it could continue to move down. Initial support on the downside is near the $19.00 level.
The first major support is near the $18.80 level, below which the bears might gain strength. In the stated case, Solana price may perhaps decline toward the $18.20 support. The next major support is near the $17.50 level.
Technical Indicators
4-Hours MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $18.80, and $18.20.
Major Resistance Levels – $20.00, $20.50, and $21.50.
Credit: Source link
