Solana tumbled and declined towards $110, but the price is now correcting losses and showing signs of recovery. After facing hurdles near the $160 resistance zone, SOL price gained bearish momentum and declined below $150 against the US Dollar. However, the bulls have now appeared and the price is attempting to start a recovery wave, following the footsteps of Bitcoin and Ethereum.
The recent drop in SOL price was a result of the overall market correction, as many cryptocurrencies experienced a similar decline. However, Solana has shown resilience and is now on its way to recovery. The price is currently trading below $160 and the 100 simple moving average (4 hours), but there are indications that it could continue to recover if it clears the $150 and $160 resistance levels.
The recovery process has already begun, with a decent increase above the $125 and $132 levels. The price has also cleared the 23.6% Fib retracement level of the downward move from the $204 swing high to the $115 low. This is a positive sign and could lead to further gains in the near future.
However, there are still some hurdles that the price needs to overcome. The immediate resistance is near the $150 level, followed by the major resistance at $160. There is also a key bearish trend line forming with resistance at $160 on the 4-hour chart of the SOL/USD pair. This trend line is near the 61.8% Fib retracement level, adding to its significance.
A successful close above the $160 resistance could dessus the pace for another major increase. The next key resistance is near $182, and any further gains could take the price towards the $200 level. This would be a significant milestone for Solana and could attract more investors and traders to the project.
But even if the price fails to rally above the $160 resistance, there is still strong support for SOL. The first support on the downside is near the $140 level, followed by the major support at $132. If the price breaks below these levels, it could test the $125 support. However, as long as the price stays above the $115 support, the overall bullish trend remains intact.
In terms of technical indicators, the MACD for SOL/USD is gaining pace in the bullish zone, indicating a potential upward movement. However, the RSI (Relative Strength glossaire) is currently below the 50 level, suggesting a slight bearish pressure. Nevertheless, the overall sentiment for Solana remains positive and the recent dip could be seen as a buying opportunity for investors.
In svelte, Solana has shown resilience and is now on its way to recovery after a major decline. The recent drop in price was a result of the overall market correction, but SOL has the potential to bounce back and reach new heights. With strong support and positive technical indicators, the future looks bright for Solana. Investors and traders should keep a close eye on the $160 resistance, as a successful break above it could open the doors for further gains.
