Solana failed to hold above $146 and has pulled back. The price of SOL is now trading below $145 and could find support near the $140 level.
SOL began a downward correction after being unable to break past $150, moving below $145 and entering a short-term bearish phase. The decline pushed it below the 61.8% Fibonacci retracement level of the recent rise from $138 to $149. However, buyers are showing interest above $140, and a bullish trend line is providing support around $141 on the hourly chart.
Currently, SOL is trading below $145 and the 100-hourly simple moving average. Immediate resistance is near $144, followed by $146. A clear break above $148 could pave the way for further gains toward $155 and possibly $162.
On the downside, if SOL fails to climb above $146, it could see another drop. Initial support lies near $141 along the trend line, with stronger support around $140, which aligns with the 76.4% Fibonacci retracement level. A break below $140 might lead to a decline toward $132, and a close under that level could bring $124 into focus.
Technical Indicators:
– Hourly MACD: Gaining momentum in bearish territory.
– Hourly RSI: Below 50, indicating bearish momentum.
– Major Support Levels: $141 and $140.
– Major Resistance Levels: $146 and $148.
Frequently Asked Questions
Of course Here is a list of FAQs about Solana retreating to a key support level designed for a range of experience levels
Beginner Definition Questions
1 What does it mean that Solana has retreated to a key support level
This means Solanas price has fallen down to a specific price point where in the past it has stopped falling and bounced back up Traders see this level as a floor that could hold the price
2 What is a support level in simple terms
Think of it like a price floor Its a level where a lot of buyers have historically stepped in to purchase creating demand that prevents the price from falling furtherat least temporarily
3 What is a critical test of price stability
It means the price is at a makeorbreak point If the support level holds the price could stabilize and rise If it breaks decisively below it could signal further significant declines
4 Why is this happening to Solana
Price movements are driven by many factors overall market sentiment profittaking by traders networkspecific news or broader economic conditions
Intermediate Market Analysis Questions
5 How do traders identify this key support level
They look at historical price charts to find levels where the price has reversed direction multiple times Common tools include horizontal lines at past lows moving averages or Fibonacci retracement levels
6 What happens if Solana holds this support level
If buying pressure is strong enough at this level the price could consolidate and then attempt a rebound This would be seen as a sign of strength and stability
7 What happens if Solana breaks below this support level
A clear break below especially on high trading volume could trigger a wave of selling The old support level then often becomes a new resistance level and the price may fall to seek the next lower support
8 Is this a good time to buy Solana
Some traders see a successful test of a strong support level as a potential buying opportunity However its a highrisk strategy until theres confirmation the price is actually bouncing and not just pausing before a further drop Never invest more