Solana started a fresh increase above the $200 support area. SOL price is correcting gains and it must stay above $200 for a fresh increase.
SOL price started a new uptrend after it stabilized above $188 against the US dollar.
The price is currently trading below $212 and the 100 hourly simple moving average.
There was a break below a key bullish trend line with support at $210 on the hourly chart of the SOL/USD pair (data source: Kraken).
If the bulls defend the $200 support area, the pair could start a fresh increase.
Solana Price Starts Downside Correction
Solana price formed a support base and started to break above the $185 level like bitcoin and Ethereum. It also broke the $195 and $200 resistance levels with great strength.
The price even broke the $212 level. A high was formed at $225 and the price is currently correcting gains. The price declined below the $220 and $212 levels. The price declined below the 50% Fibonacci retracement level of the upward move from the $195 swing low to $225 high.
There was a break below a key bullish trend line with support at $210 on the hourly chart of the SOL/USD pair. Solana is currently trading below $212 and the 100 hourly simple moving average.
The price is currently approaching a critical support at $200 and the 76.4% Fibonacci retracement level of the upward move from the $195 swing low to $225 high. On the upside, the price is facing resistance near $208. The next major resistance is near $212.
The main resistance could be $225. A successful close above the $225 resistance could set the stage for another steady rise. The next key resistance is $242. If gains continue, the price could drop to the $250 level.
More losses for SOL?
If SOL fails to break out of the $212 resistance, it could continue to fall. On the downside, an initial support is near $202. The first major support is near $200.
A break below the $200 level could lead the price towards the $195 area. If there is a close below the $195 support, the price could decline towards the $185 support in the near term.
Technical indicators
Hourly MACD – The MACD for SOL/USD is losing pace in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $200 and $195.
Major Resistance Levels – $208 and $212.
