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02/09/24
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Solana Faces Decline: Key Support Levels Tested Amid Market Shifts
Solana’s cryptocurrency has entered a new phase of decline, falling below key levels of support. As the market sentiment shifts similarly to that of Bitcoin and Ethereum, Solana’s value has dropped below $150 and $142, ultimately testing the $128 mark. Currently, the price is struggling to initiate a recovery movement.
The latest downturn has seen the price reach as low as $127.80, indicating significant consolidation following its losses. Although there are early signs of a potential recovery, Solana trades below critical indicators such as the 23.6% Fibonacci retracement level from the recent swing high of $147.28 to the low of $127.80. Presently, the asset is positioned below $140 and the 100-hourly simple moving average.
Resistance is forming around the $132.50 level, compounded by a bearish trend line that sits at $134 on the hourly chart. For any recovery to gain traction, the price must break through the $138 resistance zone, which also corresponds to the 50% Fibonacci retracement level from the recent price movement. A successful advance past the $134 and $138 levels could set the stage for a gradual increase, potentially targeting $142 and even $150 thereafter.
Should Solana fail to overcome the $138 resistance, further declines could ensue. Key support levels to monitor include $128 and $122, with a breakdown beneath $122 possibly triggering a drop towards $115. A sustained close below $115 may see the price descend to $100 in the near future.
Technical indicators suggest an increase in selling pressure, with the MACD moving deeper into the bearish zone and the RSI remaining below the neutral level of 50. These conditions signal that investors should remain vigilant in the face of potential further declines.
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