Solana (SOL) has recently experienced a fresh decline from the $220 zone, with the price now consolidating and facing resistance near the $215 and $220 levels. Despite this short-term setback, there are indications that SOL could be gearing up for a bullish breakout if the price manages to clear the $220 resistance zone.
The recent decline in SOL’s price has brought it below key support levels such as $212 and the 100-hourly simple moving average. However, the formation of a short-term declining channel or a bullish flag on the hourly chart suggests that a potential reversal could be on the horizon.
If the bulls can successfully push the price above the $215 and $220 resistance levels, it could set the stage for another steady increase in SOL’s value. The next key resistance level to watch would be $232, with any further gains potentially sending the price toward the $250 level.
On the other hand, if SOL fails to break through the $215 resistance, it could lead to another decline. The initial support on the downside is near the $202 zone, with the first major support at the $198 level, which coincides with the 50% Fib retracement level of the upward move from the $175 swing low to the $220 high.
A break below the $198 level might send the price toward the $192 zone, and a close below the $192 support could see the price decline further toward the $175 support in the near term.
The technical indicators for SOL/USD suggest that the MACD is losing pace in the bullish zone, while the RSI is currently below the 50 level. These indicators, combined with the key support and resistance levels, will play a crucial role in determining the future direction of Solana’s price.
As the crypto market continues to evolve, investors and traders will be closely monitoring SOL’s price action to see if it can break through the current resistance and embark on a new bullish trajectory.
Tags: Solana, SOL, SOLUSD, technical analysis, crypto market
Source: https://www.newsbtc.com/analysis/solana-sol-at-a-crossroads-220/