Solana (SOL) Faces Many Challenges—Can Bulls Hold the Line？

Solana started a recovery wave above the $120 resistance zone. SOL price is now consolidating and might struggle to recover above the $132 resistance.

• SOL price started a fresh decline below the $150 and $140 levels against the US Dollar.
• The price is now trading below $130 and the 100-hourly simple moving average.
• There is a short-term rising channel forming with support at $124 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The pair could start a fresh increase if the bulls clear the $132 zone.

Solana Price Faces Resistance

Solana price struggled to clear the $155 resistance and started a fresh decline, like Bitcoin and Ethereum. SOL declined below the $140 and $132 support levels.

It even dived below the $120 level. The recent low was formed at $114 before the price recovered some losses. It climbed above the $120 and $122 levels. The price surpassed the 23.6% Fib retracement level of the downward move from the $151 swing high to the $114 swing low.

Solana is now trading below $130 and the 100-hourly simple moving average. There is also a short-term rising channel forming with support at $124 on the hourly chart of the SOL/USD pair.

On the upside, the price is facing resistance near the $128 level. The next major resistance is near the $130 level. The main resistance could be $132 and the 50% Fib retracement level of the downward move from the $151 swing high to the $114 swing low.

A successful close above the $132 resistance zone could set the pace for another steady increase. The next key resistance is $140. Any more gains might send the price toward the $150 level.

Another Decline in SOL？

If SOL fails to rise above the $132 resistance, it could start another decline. Initial support on the downside is near the $124 zone. The first major support is near the $120 level.

A break below the $120 level might send the price toward the $114 zone. If there is a close below the $114 support, the price could decline toward the $100 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is losing pace in the bullish zone.

Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is near the 50 level.

Major Support Levels – $124 and $120.

Major Resistance Levels – $128 and $132.