Solana Price Prediction: Bulls Are Still in the Game Despite Recent Price Drop
Solana (SOL) has been in a downside correction since it reached the $24 resistance level against the U.S. Dollar. The SOL price may initiate a fresh increase if it manages to stay above the $21.50 support level. In the past week, the SOL price found support near the $20.50 level and managed to break above the $21.50 resistance. However, the bulls were unable to overcome the strong $24 resistance and have entered a correction phase. Despite the recent correction, it’s too early to say that bulls have given up on Solana.
Here are the key highlights of Solana’s price movement:
– SOL price corrected lower from the $24 resistance against the U.S. Dollar.
– The price is now trading below $23.50 and the 100 simple moving average (4 hours).
– There was a break above a major bearish trend line with resistance near $22.50 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
– The pair could start a fresh increase if it stays above the $21.50 support.
Solana Price Remains Supported
Over the past week, Solana found support above the $20.50 level and started a fresh increase by breaking above the $21.50 resistance. There was also a break above a major bearish trend line with resistance near $22.50 on the 4-hour chart of the SOL/USD pair. However, bears were active near the $24 resistance, causing a price correction. The recent high was formed near $23.99 and, like Bitcoin and Ethereum, the price is now correcting gains.
During the correction, SOL declined below the $23.50 and $23.00 levels, and also dropped below the 50% Fibonacci retracement level of the upward move from the $20.39 swing low to the $23.99 high. It is now trading below $23.50 and the 100 simple moving average (4 hours).
On the upside, immediate resistance is situated near the $22.50 level, with the next major resistance near the $23 level and the 100 simple moving average (4 hours). A close above the $23 level could propel the price towards the $24 resistance zone. Any further gains might send the price towards the $25 level.
More Losses in SOL?
If SOL fails to clear the $23 resistance level, it could continue moving downwards. Initial support on the downside is near the $21.75 level or the 61.8% Fibonacci retracement level of the upward move from the $20.39 swing low to the $23.99 high. The first major support is close to the $21.50 level. If the price drops below this level, bears might become more aggressive. In this scenario, the price may decline towards the $20.40 support, with the next major support near the $20 level.
Technical Indicators
The 4-hour chart for SOL/USD shows some bearish signs. The Moving Average Convergence Divergence (MACD) indicator is gaining pace in the bearish zone, while the Relative Strength Index (RSI) is below the 50 level. Despite these bearish signals, it’s still too soon to claim that the bulls have lost control, as the price can initiate a fresh increase if it manages to stay above the $21.50 support level.
In conclusion, the Solana price has entered a correction phase after failing to break through the $24 resistance. The bulls are now aiming for a fresh increase by staying above the $21.50 support level. However, further losses may occur if SOL fails to clear the $23 resistance level. The technical indicators show some bearishness, but it’s still too early to rule out the possibility of a bullish reversal.
