Solana failed to stay above $85 and corrected some gains. SOL price is now consolidating and may aim for another increase above $85.
- SOL price started a downward correction below $84 against the US dollar.
- The price is now trading above the $82 level and the 100 hourly simple moving average.
- There is an uptrend line forming with support at $82.50 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could continue its losses if it falls below the $80 area.
Solana price remains supported
Solana price failed to stay above the $85 level and started a downward correction, e.g Bitcoin and Ethereum. SOL fell below $84 and $83.50 to enter a short-term bearish zone.
There was a move below the 50% Fib retracement level of the upward wave from the swing low at $81.42 to the swing high at $85.89. The price even tested the $83 support level. Moreover, there is an uptrend line forming with support at $82.50 on the hourly chart of the SOL/USD pair.
Solana is now trading above the $83 level and the 100 hourly simple moving average. On the upside, the price is facing resistance near the $84 level. The next major resistance is near the $85 level. The main resistance could be $88. A successful close above the $88 resistance area could pave the way for another steady increase. The next major resistance is $95. Any further gains could send the price towards the $100 level.
Break downside in SOL?
If SOL fails to rise above the $85 resistance level, it could start another decline. Initial support on the downside is near the $82.5 area, the trend line, and the 76.4% Fibonacci retracement level of the upward wave from the swing low at $81.42 to the swing high at $85.89. The first major support is located near the $81.40 level.
A break below the $81.40 level could send the price towards the $80 support area. If there is a close below the $80 support level, the price could fall towards the $76.50 support level in the near term.
Technical indicators
Hourly MACD – The MACD for SOL/USD is losing strength in the bullish zone.
Hourly RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Key Support Levels – $82.50 and $80.00.
Major resistance levels – $85.00 and $88.00.
