Why SOL Could Dive Another 50%

Solana is accelerating lower below $12 and $10 levels against the US Dollar. SOL price remains at a risk of a move towards the $7.50 and $7.00 levels.

• Sol price is struggling and trading well below the $12 level against the US Dollar.
• The price is now trading below $10 and the 100 simple moving average (4-hours).
• There is a major bearish trend line forming with resistance near $10.55 on the 4-hours chart of the SOL/USD pair (data source from Kraken).
• The pair could face a strong selling interest near $10.55 and $12 in the coming days.

Solana Price Gains Bearish Momentum

This month, solana price saw a strong decline from the $15 resistance zone. There was a drop below the $13.50 and $12 support levels to move into a bearish zone again.

Sol price even dumped below the $10 level and the 100 simple moving average (4-hours). The price traded as low as $9.66 and is currently consolidating losses. There are clear strong bearish signs below the $10 level, unlike bitcoin and ethereum.

Besides, there is a major bearish trend line forming with resistance near $10.55 on the 4-hours chart of the SOL/USD pair. On the upside, an immediate resistance is near the $10.55 level and the trend line.

The first major resistance is near the $11 level. It is close to the 23.6% Fib retracement level of the main drop from the $14.95 swing high to $9.66 low. The next major resistance is near the $12 zone, above which the price might rise towards the 100 simple moving average (4-hours).

Source: SOLUSD on TradingView.com

The 50% Fib retracement level of the main drop from the $14.95 swing high to $9.66 low is also near $12.30 to act as a strong resistance. Any more gains might send the price towards the $15 level.

More Losses in SOL?

If SOL fails to clear the $10.55 resistance, it could continue to move down. An initial support on the downside is near the $9.65 level.

The first major support is near the $9.20 level. The next major support is near the $8.20 level. If there is a downside break below the $8.20 support, the bears might even push the price below $7.50.

Technical Indicators

4-Hours MACD – The MACD for SOL/USD is gaining pace in the bearish zone.

4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is currently below the 50 level.

Major Support Levels – $9.65, $9.20 and $8.20.

Major Resistance Levels – $10.55, $11 and $12.