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Solana (SOL) Drops Below $200: Brief Setback or Emerging Trend?
Solana faced difficulty surpassing the $225 resistance, leading to a reduction in its gains. The SOL price has now dipped below $200, exhibiting several bearish indicators.
After failing to maintain its position above $220 against the US Dollar, SOL entered a fresh decline. Currently, the price trades below $200 and the 100-hourly simple moving average.
A bearish trend line is developing with resistance near $204 on the hourly SOL/USD chart (data sourced from Kraken). If bulls manage to break through the $205 zone, a new upward movement could begin.
Solana's Price Takes a Hit Again
Similar to Bitcoin and Ethereum, Solana's price faced challenges clearing the $220-$225 resistance range, initiating a new decline. It moved below the key support levels of $212 and $205.
The price even fell below the $200 mark, forming a low at $196.73. Now, it consolidates losses beneath the 23.6% Fibonacci retracement level from the $223 high to the $196 low.
Currently, Solana trades under $200 and the 100-hourly SMA. A connecting bearish trend line is evident with resistance at $204 on the hourly chart. On the upside, the price encounters resistance near $204, with the next significant barrier at $210 or the 50% Fib retracement level from the $223 high to the $196 low. The primary resistance is around $213, and a decisive close above this level could lead to a steady rise. Subsequent resistance levels could be $225 and potentially $240.
Potential Further Decline in SOL?
If SOL fails to surpass the $205 resistance, it might face another decline. Initial support lies near $196, with the first major support around $188.
Breaking below $180 could drive the price toward $175. A close beneath the $175 support may result in a further drop to approximately $162.
Technical Indicators
Hourly MACD: The MACD for SOL/USD is gaining momentum in the bearish zone.
Hourly RSI: The RSI for SOL/USD is below the 50 mark.
Major Support Levels: $196 and $188.
Major Resistance Levels: $205 and $210.