Solana failed to hold above $140 and dropped sharply. The price is now consolidating below $135 and may find it difficult to start a recovery. SOL began a fresh decline against the US Dollar, falling below $136 and $135, and is currently trading below both the $135 level and the 100-hour simple moving average.
A key bearish trend line is forming with resistance near $138 on the hourly SOL/USD chart. For a recovery to gain traction, the price needs to defend support near $128 or $125.
Recent Price Action
After failing to stay above $140, Solana extended its decline, breaking below the $138 and $135 support levels. The drop accelerated below $132, with a low formed near $124. The price is now attempting a minor recovery and has moved above the 23.6% Fibonacci retracement level of the recent drop from $143 to $124.
On the upside, immediate resistance is near $134, which coincides with the 50% Fibonacci retracement level of the same decline. The next major resistance is near $136, followed by the main barrier at $138, where the bearish trend line aligns. A clear break above $138 could open the door for a move toward $144, with further gains possibly targeting $150.
Potential Downside
If SOL fails to climb above the $133 resistance, it could resume its decline. Initial support sits near $129, followed by a major support level at $125. A break below $125 might push the price toward $120, and a close below that could lead to a test of the $112 support.
Technical Indicators
– Hourly MACD: Losing momentum in the bearish zone.
– Hourly RSI: Currently above the 50 level.
– Major Support Levels: $129 and $125.
– Major Resistance Levels: $133 and $138.
Frequently Asked Questions
FAQs Solanas Recovery Bearish Pressure at Resistance
Beginner Questions
1 What does bearish pressure at key resistance levels mean for Solana
This means that as Solanas price tries to rise and recover its hitting a specific price point where a lot of people are choosing to sell instead of buying This selling pressure is preventing the price from breaking higher which is a bearish signal
2 What is a resistance level in crypto trading
A resistance level is a specific price point that an asset like Solana has struggled to rise above in the past Think of it as a price ceiling Traders watch these levels closely because if the price cant break through it often falls back down
3 Why is Solanas recovery facing a setback
The setback is happening because the buying momentum that was pushing the price up is being overwhelmed by selling activity at a known resistance level This creates a stalemate where the price gets rejected and starts to drop pausing or reversing the recovery trend
4 Is this a sign I should sell my SOL
Not necessarily Market movements like this are common It could be a temporary pause Your decision should be based on your own investment strategy risk tolerance and longterm view of Solana not just on one piece of technical analysis
Advanced Practical Questions
5 How do traders identify these key resistance levels for Solana
Traders use technical analysis primarily by looking at historical price charts They identify levels where the price has peaked multiple times before where large volumes of trades have occurred or by using mathematical indicators like moving averages and Fibonacci retracement levels
6 What happens if Solana breaks through this resistance
A decisive and highvolume break above a key resistance level often turns that resistance into a new support level This is considered a very bullish signal and could lead to a stronger sustained recovery rally as new buyers enter the market
7 What are common reasons for increased selling at resistance
ProfitTaking Investors who bought at lower prices sell to lock in gains