The Solana cryptocurrency had a significant surge, surpassing the resistance level of $65 in relation to the United States Dollar. The price of SOL is now undergoing a corrective phase, perhaps leading to a decline below the support level of $50.
The price of SOL started a significant upward movement surpassing the barrier level of $60, then encountering opposition from bearish market participants vis-à-vis the US Dollar.
Currently, the price is exhibiting a trading pattern below the threshold of $60, as well as below the 100 simple moving average over a 4-hour time frame.
The 4-hour chart of the SOL/USD pair showed a break below a short-term ascending channel, whereby support was seen in the vicinity of $58.00.
There is a possibility that the pair may see a decline below the support zone of $55.00 in the next sessions.
The Solana price has started a corrective movement towards the downside.
Over the course of recent days, Solana had a significant surge, surpassing the threshold of $60. SOL had a positive trend subsequent to its attainment of a price level beyond $60, hence demonstrating superior performance in comparison to Bitcoin and Ethereum.
The price was elevated over the $65 mark by the bulls. A peak was established in the vicinity of $68.16, subsequent to which the price saw a recent decline. The price of the asset fell below the $60 mark and then had a test at the $52 level. A trough was established in the vicinity of $51.23, and the current price is undergoing a period of consolidation within a certain range.
The 4-hour chart of the SOL/USD pair showed a break below a short-term ascending channel, which had a support level at $58.00. The stock of SOL is now being traded at a value lower than $60 and is also below its 100-day simple moving average.
One positive aspect is that there is a nearby resistance level at about $59.50. The current price is in proximity to the 50% Fibonacci retracement level, which corresponds to the negative movement seen between the swing high of $68.16 and the low of $51.23. The first significant degree of resistance is seen in the vicinity of the $60.00 mark.
The primary level of resistance is now situated around $62, which corresponds to the 61.8% Fibonacci retracement level derived from the downward trajectory spanning from the swing high of $68.16 to the low of $51.23. The possibility of a substantial gain may be influenced by a successful breach of the resistance level at $62.00. The following significant level of resistance is about $68.50. Further increases in value might potentially drive the price towards the threshold of $72.00.
Are are further losses seen in SOL?
If the SOL cryptocurrency fails to surpass the resistance level of $60.00, there is a possibility that it may see a downward movement. The $55.00 level is expected to provide first support on the downside.
The first significant level of support can be seen in the vicinity of $51.20, and a breach of this threshold may prompt a potential examination of the $50 mark. In the event of a breach below the support level of $50, it is plausible that the price may experience a decrease towards the support level of $45 in the immediate future.
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Technical indicators are tools used in financial analysis to assist in making investment decisions. These indicators are mathematical calculations based on historical price and volume
The 4-hour Moving Average Convergence Divergence (MACD) indicator indicates a decrease in momentum inside the positive region for the SOL/USD trading pair.
The Relative Strength Index (RSI) for the SOL/USD pair is now below the 50 mark, indicating a negative trend.
The primary levels of support are seen at $55.00 and $51.20.
The major resistance levels for the given asset are identified as $60.00, $62.00, and $68.50.
