Solana declined below $130 after failing to hold above $132, with technical indicators pointing to potential further weakness. The cryptocurrency is consolidating near key support levels as traders assess whether the decline will continue.
What Happened: Price Decline
SOL dropped below the $130 and $128 support levels following a failed attempt to remain stable above $132. The decline mirrored broader weakness in Bitcoin and Ethereum.
The price gained bearish momentum below $126, reaching a low of $121 before recovering slightly to test the 23.6% Fibonacci retracement level of the move from $134 to $121.
Solana is now trading below the 100-hourly simple moving average.
A key bearish trend line has formed with resistance at $131 on the hourly chart of the SOL/USD pair. Immediate resistance stands near $125, with major resistance at $128, which corresponds to the 50% Fibonacci retracement level.
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Why It Matters: Technical Signals
The main resistance sits at $130, with a successful close above $132 potentially setting the pace for a move toward $140 or $145. Initial support on the downside is located near $122, with the first major support at $120.
A break below $120 could send the price toward $112, with further downside potential to $105 if that level fails to hold.
The MACD for SOL/USD is gaining pace in the bearish zone, while the Relative Strength Index remains below 50.
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