Solana has entered a fresh downward spiral, dropping from the $162 threshold. The digital asset has shed over 15 percent of its value and appears to be struggling to regain momentum above the crucial $150 resistance point.
SOL initiated its descent by breaking below both the $162 and $150 price levels against the US dollar. The cryptocurrency is now trading below the psychologically important $150 mark and the 100-hourly simple moving average. Technical analysts have identified a connecting bearish trend line forming with resistance at $144 on the hourly chart of the SOL/USD pair, according to data from Kraken. The pair might begin a recovery phase if buyers manage to push past the $150 zone.
The downward movement began after Solana failed to break through the $185 resistance level. This performance notably lagged behind both Bitcoin in the same period. The decline continued past several key support levels including $162 and $150.
SOL's descent took it below $135, with the recent low recorded at $131. The price is currently consolidating losses with a distinctly bearish bias. A minor recovery wave did materialize above the 23.6% Fibonacci retracement level of the downward movement from the $173 swing high to the $131 swing low.
The digital asset faces immediate resistance near the $144 level. Beyond this, a more significant barrier exists at the $150 mark. The primary resistance appears to be at $152, which coincides with the 50% Fibonacci retracement level of the recent downward trajectory from $173 to $131. A successful close above this $152 resistance zone could potentially trigger another steady increase. If such a scenario unfolds, the next key resistance would be at $160. Further gains might push SOL toward the $165 level.
Should SOL fail to surpass the $145 resistance, another decline could materialize. The initial support on the downside is positioned near the $141 zone. The first major support level that traders are watching is around $136.
A break below $136 could potentially drive the price toward the recent low of $131. Market observers note that if there is a close below the $125 support, the price might extend its decline toward the $120 support in the near term. This would represent a significant deterioration in SOL's market position and could trigger additional technical selling.
Disclaimer: The information provided in this article is for educational purposes only and should not be considered financial or legal advice. Always conduct your own research or consult a professional when dealing with cryptocurrency assets.
