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Solana gained bearish momentum and was trading below $20 against the US Dollar. SOL price may now struggle to climb above the $20 and $21 resistance levels.
- SOL price is showing bearish signs below the $20.50 resistance against the US Dollar.
- The price is now trading below the $19.80 and 100 simple moving average (4-hours).
- There is a major bearish trend line forming with resistance near $19.90 on the 4-hours chart of the SOL/USD pair (data source from Kraken).
- The pair could recover but gains above $20 could be limited.
Solana widens price deficit
This past week, Solana price started a major decline from above $21. SOL gained bearish momentum and was able to trade below the $20.50 support.
The bears gained strength and pushed the price below the $20 support. The price is now showing bearish signs below $20, similar to bitcoin and ethereum. A low formed near $18.70 and the price is now consolidating losses.
SOL is now trading below the $19.80 level and the 100 simple moving average (4-hours). There is also a major bearish trend line forming with resistance near $19.90 on the 4-hours chart of the SOL/USD pair. On the upside, an immediate resistance is near the $19.80 level and the trend line.
The next major resistance is near the $20 area or the 50% Fib retracement level of the downside move from the $21.51 high to $18.70 low. The main resistance is now forming near the $20.50 level and the 100 simple moving average (4-hours).
Source: SOLUSD on TradingView.com
The 61.8% Fib retracement level of the decline from the $21.51 high to $18.70 low is also near $20.50. A close above the $20.50 level could send the price again towards the $21.50 resistance area. Any further gains could send the price towards the $22 level.
More damage in SOL?
If SOL fails to overcome the $20.50 resistance, it could continue to decline. On the downside, an initial support is near the $19.00 level.
The first major support is near the $18.80 level, below which the bears are likely to consolidate. In the mentioned case, Solana price could decline towards the $18.20 support. The next major support is near the $17.50 level.
technical indicators
4-hours MACD – The MACD for SOL/USD is gaining momentum in the bearish zone.
4-hours RSI (Relative Strength Index) – The RSI for SOL/USD is well below the 50 level.
Key Support Levels – $18.80, and $18.20.
Key Resistance Levels – $20.00, $20.50, and $21.50.
