Solana (SOL) Price Analysis: Risk of Downside Break Below $30

• Solana price started a fresh decline from the $32.00 resistance zone against the US Dollar.
• The price is now trading below $31 and the 55 simple moving average (4-hours).
• There is a key bearish trend line forming with resistance near $30.60 on the 4-hours chart of the SOL/USD pair (data feed from Coinbase).
• The pair could extend losses if there is a clear move below the $29.50 support zone.

Solana price is trading below $32 against the US Dollar, similar to bitcoin. SOL could accelerate further lower if it stays below the $32.00 resistance zone.

Solana (SOL) Price Analysis

SOL price made a few attempts to gain strength above the $32.00 resistance zone. However, the price failed to clear the $32 zone and started a fresh decline from $31.98.

There was a steady decline below the $31.50 support and the 55 simple moving average (4-hours). The price declined below the $32.00 support. Besides, there was a break below the 23.6% Fib retracement level of the upward move from the $27.75 swing low to $31.98 high.

It is now trading below $31 and the 55 simple moving average (4-hours). On the upside, an immediate resistance is near the $30.50 level. There is also a key bearish trend line forming with resistance near $30.60 on the 4-hours chart of the SOL/USD pair.

The next major resistance is near the $32.00 level. A clear move above the $31.80 and $32.00 resistance levels might call for a steady increase. The next major resistance sits near the $34.40 level. Any more gains might send sol price towards the $35.00 resistance zone.

On the downside, an initial support is near the $29.50 level. It is near the 50% Fib retracement level of the upward move from the $27.75 swing low to $31.98 high. A downside break below the $29.50 support level might spark a major drop. In the stated case, the price may perhaps decline towards the $27.50 level.

Looking at the chart, solana price is clearly trading below $32 and the 55 simple moving average (4-hours). Overall, the price could extend losses if there is a clear move below the $29.50 support zone.

Technical Indicators

4 hours MACD – The MACD is now gaining momentum in the bearish zone.

4 hours RSI (Relative Strength Index) – The RSI is now below the 50 level.

Key Support Levels – $29.50 and $27.50.

Key Resistance Levels – $30.50, $31.80 and $32.00.

Tags: SOL, Solana