Solana started a fresh increase above the $200 support zone. SOL price is correcting gains and must stay above $200 for a fresh increase.
- SOL price started a fresh increase after it settled above the $188 level against the US Dollar.
- The price is now 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 from Kraken).
- The pair could start a fresh increase if the bulls defend the $200 support zone.
Solana Price Starts Downside Correction
Solana price formed a support base and started a fresh increase above the $185 level like Bitcoin and Ethereum. There was a strong move above the $195 and $200 resistance levels.
The price even cleared the $212 level. A high was formed at $225 and the price is now correcting gains. There was a move below the $220 and $212 levels. The price dipped below the 50% Fib retracement level of the upward move from the $195 swing low to the $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 now trading below $212 and the 100-hourly simple moving average.
The price is now approaching the key support at $200 and the 76.4% Fib retracement level of the upward move from the $195 swing low to the $225 high. On the upside, the price is facing resistance near the $208 level. The next major resistance is near the $212 level.
The main resistance could be $225. A successful close above the $225 resistance level could set the pace for another steady increase. The next key resistance is $242. Any more gains might send the price toward the $250 level.
More Losses in SOL?
If SOL fails to rise above the $212 resistance, it could continue to move down. Initial support on the downside is near the $202 level. The first major support is near the $200 level.
A break below the $200 level might send the price toward the $195 zone. If there is a close below the $195 support, the price could decline toward the $185 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 below the 50 level.
Major Support Levels – $200 and $195.
Major Resistance Levels – $208 and $212.
Read the full article here
