Solana failed to hold above $132 and extended its decline. The price is now consolidating below $130 and may face challenges in starting a recovery. SOL began a fresh drop below $132 and $130 against the US Dollar and is currently trading below both the $130 level and the 100-hourly simple moving average. A key bearish trend line is forming with resistance near $126 on the hourly chart of SOL/USD.
If the bulls manage to defend the $118 or $115 support levels, the price could attempt a recovery. However, after failing to stay above $132, SOL dropped below the $130 and $126 support levels, gaining bearish momentum below $122. A low was formed near $117, and the price is now consolidating with a minor recovery above the 23.6% Fibonacci retracement level of the recent decline from $132 to $117.
Immediate resistance is near $125, which coincides with the 50% Fibonacci retracement level of the same downward move. The next major resistance is near $126, aligned with the bearish trend line. A clear break above the $132 resistance zone could pave the way for further gains toward $140 and possibly $144.
On the downside, if SOL fails to climb above $126, it could resume its decline. Initial support is near $119, followed by the major support at $117. A break below $117 might push the price toward $115, and a close below that level could lead to a decline toward $102.
Technical Indicators:
– Hourly MACD: Losing momentum in the bearish zone.
– Hourly RSI: Below the 50 level.
– Major Support Levels: $117 and $115.
– Major Resistance Levels: $126 and $132.
Frequently Asked Questions
Frequently Asked Questions About Solanas Price Decline
Beginner Questions
Q Why is Solanas price going down
A Solanas price is declining because more people are selling than buying Sellers are pushing the price toward lower support levels which are price points where buyers have historically stepped in
Q What does sellers aim for lower support levels mean
A It means traders who are selling expect the price to fall to a specific lower price point before it might stabilize or bounce back They are selling now anticipating it will hit that lower price
Q Should I panic and sell my SOL right now
A Panic selling is rarely a good strategy Price declines are normal in crypto markets Its better to review your original investment goals assess your risk tolerance and make a calm decision rather than reacting to shortterm fear
Q What are support levels in simple terms
A Think of a support level as a price floor Its a price point where in the past the asset stopped falling because enough buyers appeared there creating a level of support for the price
Q Is this decline specific to Solana or is the whole crypto market down
A Often Solana moves with the broader crypto market Check major assets like Bitcoin and Ethereum If they are also down its likely a marketwide trend If only Solana is falling sharply it could be due to Solanaspecific news or issues
Intermediate MarketRelated Questions
Q What are common reasons for a sustained decline like this
A Reasons can include negative broader market sentiment profittaking after a rally concerns about network stabilityoutages increased selling pressure from large holders or negative macroeconomic news
Q How can I find where these lower support levels are
A Traders use technical analysis looking at historical price charts to identify levels where the price has previously reversed or paused during a decline Common tools include horizontal support lines moving averages and Fibonacci retracement levels
Q Could this be a good time to buy Solana
A Some investors use