Solana failed to hold above $125 and extended its decline. The price of SOL is now consolidating below $120 and may face challenges in starting a recovery. SOL began a fresh drop below $120 and $115 against the US Dollar and is currently trading below both $120 and the 100-hour simple moving average.
A key bearish trend line is forming with resistance near $116 on the hourly chart for SOL/USD. For a recovery to begin, bulls need to defend the support levels at $112 or $105.
Solana Price Drops Further
After failing to stay above $125, Solana started a new decline, similar to Bitcoin and Ethereum. SOL broke below the $125 and $122 support levels and gained bearish momentum under $120. A low was formed near $112, and the price is now consolidating with a minor recovery toward the 23.6% Fibonacci retracement level of the drop from the $128 high to the $112 low.
Immediate resistance is near $116, aligned with the bearish trend line. The next major resistance is around $120, which coincides with the 50% Fibonacci retracement level of the same downward move. The main resistance sits near $122. A clear close above $122 could support a steady increase toward $125 and potentially $132.
Risk of Another Decline
If SOL fails to climb above the $116 resistance, it could resume its decline. Initial support is near $114, followed by a major support level at $112. A break below $112 might push the price toward the $105 support zone. A close below $105 could lead to further losses toward $102.
Technical Indicators
– Hourly MACD: The MACD for SOL/USD is losing momentum in the bearish zone.
– Hourly RSI: The RSI is below the 50 level.
– Major Support Levels: $112 and $105.
– Major Resistance Levels: $116 and $120.
Frequently Asked Questions
FAQs Solana Drops to 112 A Critical Level
BeginnerLevel Questions
1 What does it mean that Solana is at a critical level
A critical level often called a support or resistance level is a key price point where many traders have historically bought or sold Hitting 112 means the price is testing a level that could trigger a significant moveeither a bounce back up or a further dropdepending on whether buyers or sellers take control
2 Why is 112 specifically important for Solana
112 has acted as a major support level in recent months This means the price has bounced upward from near this level several times before If it holds it could signal strength and a potential recovery If it breaks decisively below it could lead to a sharper decline as traders who bought there may sell to cut losses
3 Should I buy Solana now that its cheaper
This is a personal investment decision we cannot make for you While some see a dip to a known support level as a buying opportunity it carries risk The price could fall further if the support breaks Always do your own research consider your risk tolerance and never invest more than you can afford to lose
4 What caused Solana to drop to this price
Price drops can be caused by a combination of factors broader market downturns negative sentiment profittaking by traders or concerns specific to the Solana network Its rarely due to a single reason
Advanced Practical Questions
5 What technical indicators should I watch at this 112 level
Watch for
Volume A bounce on high volume suggests strong buying interest A break below on high volume suggests strong selling pressure
Relative Strength Index An RSI below 30 indicates the asset is oversold which could precede a bounce
Moving Averages Watch if the price can reclaim key moving averages after a bounce
6 Whats the difference between a support test and a support break