Solana surged toward $80 before the bears appeared. SOL price is now correcting gains but the bulls might remain active near the $65 support.
- SOL price started a major rally above the $65 resistance before the bears appeared against the US Dollar.
- The price is now trading above $65 and the 100 simple moving average (4 hours).
- There is a key bullish trend line forming with support near $65.00 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
- The pair could accelerate lower if there is a clear move below the $55.00 support.
Solana Price Starts Downside Correction
In the past few days, Solana saw a major rally above the $60 level. SOL gained bullish momentum after it settled above $65, like Bitcoin and Ethereum.
The bulls even pumped the price above the $72 level. A high was formed near $77.72 and the price recently saw a downside correction. It traded below $72 and tested $70. The bears were able to push the price below the 23.6% Fib retracement level of the upward move from the $53.50 swing low to the $77.72 high.
SOL is still trading above $66 and the 100 simple moving average (4 hours). There is also a key bullish trend line forming with support near $65.00 on the 4-hour chart of the SOL/USD pair.
The trend line is near the 50% Fib retracement level of the upward move from the $53.50 swing low to the $77.72 high. On the upside, immediate resistance is near the $72.00 level. The first major resistance is near the $75.00 level.
Source: SOLUSD on TradingView.com
The main resistance is now near $78. A successful close above the $78 resistance could set the pace for a larger increase. The next key resistance is near $82.50. Any more gains might send the price toward the $86.52 level.
More Losses in SOL?
If SOL fails to recover above the $72.00 resistance, it could continue to move down. Initial support on the downside is near the $68.00 level.
The first major support is near the $65.00 level or the trend line, below which the price could test $62. If there is a close below the $62 support, the price could decline toward the $55 support in the near term.
Technical Indicators
4-Hours MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major Support Levels – $65.00, and $62.00.
Major Resistance Levels – $72.00, $75.00, and $78.00.
