Solana (SOL) Extends Sell-Off to $130 as Recovery Attempts Remain Fragile

Solana started a fresh decline below the $145 zone. SOL price is now consolidating losses below $140 and might decline further below $130.

• SOL price started a fresh decline below $145 and $140 against the US Dollar.
• The price is now trading below $140 and the 100-hourly simple moving average.
• There is a key bearish trend line forming with resistance at $136 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The price could start a recovery wave if the bulls defend $130 or $128.

Solana Price Dips Further

Solana price failed to remain stable above $155 and started a fresh decline, like Bitcoin and Ethereum. SOL declined below the $150 and $140 support levels.

The price gained bearish momentum below $138. A low was formed at $128, and the price is now consolidating losses. The price recovered a few points above the 23.6% Fib retracement level of the downward move from the $143 swing high to the $128 low.

Solana is now trading below $140 and the 100-hourly simple moving average. On the upside, immediate resistance is near the $136 level. There is also a key bearish trend line forming with resistance at $136 on the hourly chart of the SOL/USD pair.

The next major resistance is near the $140 level or the 76.4% Fib retracement level of the downward move from the $143 swing high to the $128 low. The main resistance could be $142. A successful close above the $142 resistance zone could set the pace for another steady increase. The next key resistance is $150. Any more gains might send the price toward the $155 level.

Another Decline In SOL?

If SOL fails to rise above the $140 resistance, it could continue to move down. Initial support on the downside is near the $130 zone. The first major support is near the $128 level.

A break below the $128 level might send the price toward the $120 support zone. If there is a close below the $120 support, the price could decline toward the $108 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is gaining pace in the bearish zone.

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

Major Support Levels – $130 and $128.

Major Resistance Levels – $136 and $140.