Solana gained bearish momentum below $20 against the US Dollar. The price of SOL is struggling and may go down to $16.50 or even $15.00.
- The price of SOL shows bearish signs below $20.00 and $20.50 against the US Dollar.
- The price is currently trading below $20 and the 100 simple moving average (4 hours).
- There is a major bearish trend line formed with resistance near $19.20 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
- The pair may continue to decline if there is a close below the $17.80 support.
Solana Price Drops More
In the past few days, Solana’s price has made several attempts to clear the $22.00 resistance. However, SOL failed to gain strength for a move above the $22.00 level.
As a result, there is a new bearish reaction below the $21.20 support, just like Bitcoin and Ethereum. More importantly, the FTX news of a possible SOL selloff also puts more pressure on the bulls. The price gained bearish momentum and traded below the $20.00 support.
Finally, support was found near $17.80. A low was formed near $17.78 and the price is now consolidating losses. SOL is currently trading below $20 and the 100 simple moving average (4 hours).
Besides, there is a major bearish trend line forming with resistance near $19.20 on the 4-hour chart of the SOL/USD pair. On the upside, immediate resistance is near the $18.50 level or the 23.6% Fib retracement level of the downward move from the $20.59 swing high to the $17.78 low.
Source: SOLUSD on TradingView.com
The first major resistance is near the $19.20 level or the trend line. The next key resistance is near the 76.4% Fib retracement level on the downward move from the $20.59 swing high to the $17.78 low of $20.00. A clear move above the $20.00 resistance could send the price towards the $21.20 resistance. Any further gains could send the price to the $22 level.
More SOL Losses?
If SOL fails to clear the $19.20 resistance, it may continue to move. Initial support on the downside is near the $17.80 level.
The first major support is near the $17.20 level. If there is a close below the $17.20 support, the price may decline to the $16.50 support. In the stated case, there is a risk of further downsides to the $15.00 support in the near term.
Technical Signs
4-Hours MACD – The MACD for SOL/USD is strengthening in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for SOL / USD is below the 50 level.
Major Support Levels – $17.80, and $17.20.
Major Resistance Levels – $19.20, $20.00, and $22.00.
