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12/08/24
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Solana Faces Critical Resistance as Price Retreats to $140
Solana is currently experiencing a downturn after encountering resistance in the $162 region. The price of SOL has retraced to approximately $140 and may attempt to rally above the $150 mark in the near future.
After failing to maintain levels above $162, Solana’s price dipped below both the $155 and $150 levels against the US Dollar. This movement has positioned SOL under the $150 level and below the 100-hourly simple moving average, indicating a bearish trend similar to that observed in other cryptocurrencies like Bitcoin and Ethereum. Notably, a break below a rising channel, which had supported prices at $154, contributed to this downturn.
The recent price action saw Solana’s value drop beneath $145, ultimately testing the $140 support zone. The lowest point was recorded at $141.29, where the price is currently consolidating its losses. Resistance has emerged near the $145 level, coinciding with the 23.6% Fibonacci retracement of the decline from the $158 peak to the $141 low.
For SOL to regain momentum, it needs to break through the substantial resistance at $150, which aligns with the 50% Fibonacci retracement of the recent price movement. A successful breach of this level could initiate a bullish phase, potentially targeting $155 and eventually the key resistance at $162.
However, if Solana fails to surpass the $150 resistance, there is a risk of further declines. Initial support is observed around the $142 level, with stronger support at $140. A breakdown below $140 could trigger a further decline towards $132, and sustained movement below that level may lead to price levels reaching $124.
In summary, Solana faces a critical juncture where the interplay between resistance and support will determine its next price trajectory. Technical indicators reveal weakening bearish sentiment and declining momentum, suggesting that traders are closely watching these levels for potential trading opportunities.
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