- Solana (SOL) faces resistance at $185 and $188, struggling to break the $200 barrier, while bulls remain active near the $180 support level.
- A successful close above $188 could lead to further gains, but failure to rise above this resistance may result in a decline towards $165.
SOL Price Corrects Below Key Levels
Solana (SOL) has recently faced significant resistance in its attempt to break the $200 barrier, initiating a downside correction from the $192 zone against the US Dollar. Currently, SOL is trading below $185 and the 100-hourly simple moving average, posing challenges for the bullish momentum.
The recent market activity saw a break below a crucial bullish trend line, with support identified at $187 on the hourly chart of the SOL/USD pair, based on data from Kraken. Despite this, bulls remain active, preventing the price from settling below the critical $175 support level.
Solana’s Ascent and Pullback
Solana’s price showed robust performance, surpassing Bitcoin and Ethereum in gains by trading above the $180 and $185 resistance levels. It approached the $192 zone but struggled to reach the $200 mark. A peak was noted at approximately $193.86 before a downside correction ensued.
This correction led to a dip below the $190 and $188 support levels, with the price falling beneath the 23.6% Fibonacci retracement level from the $165 swing low to the $193 high. Additionally, the break below the key bullish trend line at $187 added to the downward pressure. Currently, SOL is positioned below $185 and the 100-hourly simple moving average.
Despite the pullback, bullish activity remains evident near the $180 support and the 50% Fibonacci retracement level from the $165 swing low to the $193 high. However, resistance at the $185 level and subsequently at $188 remains a hurdle for further upward movement.
Future Prospects: Resistance and Support Levels
For Solana to regain its upward trajectory, a successful close above the $188 resistance is crucial. Such a move could set the stage for a steady increase, with the next major resistance level around $192. Overcoming this resistance might propel SOL towards the $200 milestone.
On the contrary, if SOL fails to rise above the $185 resistance, another decline could be imminent. The initial support on the downside is near the $180 level, followed by a more significant support level at $175. A breach below $175 might lead to a further drop towards $165. Should the price close below the $165 support, a decline towards the $155 level in the near term is possible.
Solana’s journey towards $200 faces several challenges, with resistance at $185 and $188 proving to be significant barriers. However, bullish sentiments remain strong near the $180 support level. The upcoming trading sessions will be critical in determining whether SOL can overcome these resistances or if it will experience further declines. As always, traders should keep an eye on the key support and resistance levels to navigate the market effectively.
