Solana (SOL) Price Analysis: Risk of More Losses Below $34

Solana price is trading below $38 against the US Dollar, similar to bitcoin. SOL could accelerate further lower if it stays below the $40 resistance zone.

Solana (SOL) Price Analysis

SOL price made a few attempts to gain strength above the $48 resistance zone. However, the price failed to clear the $48 zone and started a fresh decline.

There was a steady decline below the $45 support and the 55 simple moving average (4-hours). The bears pushed the price below the $40 support zone. Besides, there was a break below a key bullish trend line with support near $42.00 on the 4-hours chart of the SOL/USD pair.

The pair gained pace below the $38 level. A low was formed near $33.76 and the price is now consolidating losses. On the upside, an immediate resistance is near the $36.00 level and a connecting bearish trend line.

The next major resistance is near the $37.20 level. It is near the 23.6% Fib retracement level of the downward move from the $48.09 swing high to $33.76 low. The 55 simple moving average (4-hours) is also near $38.  Any more gains might send sol price towards the $40.00 resistance zone.

The 50% Fib retracement level of the downward move from the $48.09 swing high to $33.76 low is also near $40.80 to act as a barrier. On the downside, an initial support is near the $34.20 level.

The next key support is near the $34 level. A downside break below the $34 support level might spark a sharp decline. In the stated case, the price may perhaps decline towards the $32 level. Any more losses might call for a test of $30.

Solana (SOL) Price

Looking at the chart, solana price is clearly trading below $40 and the 55 simple moving average (4-hours). Overall, the price could extend losses if there is a clear move below the $34.00 support zone.

Technical Indicators

4 hours MACD – The MACD is now gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.

Key Support Levels – $34.00 and $30.00.

Key Resistance Levels – $38.00, $40.80 and $42.00.

Source: Read Full Article