Solana failed to hold above $132 and dropped sharply. The price is now consolidating below $130 and could fall further toward $120. After starting a fresh decline against the US Dollar, SOL is trading below $128 and the 100-hourly simple moving average. A key bearish trend line is forming with resistance near $131 on the hourly chart. If buyers defend the $122 or $120 levels, a recovery could begin.
Solana’s price lost stability above $132 and followed Bitcoin and Ethereum lower, breaking below the $130 and $128 support levels. Bearish momentum increased below $126, with a low formed near $121. The price is now attempting to recover and recently tested the 23.6% Fibonacci retracement level of the drop from $134 to $121.
On the upside, immediate resistance is near $125, followed by $128, which aligns with the 50% Fibonacci retracement level. The main resistance sits near $130, along with the bearish trend line at $131. A clear break above $132 could open the way for a move toward $140 and possibly $145.
If SOL fails to climb above $128, it could resume its decline. Initial support is near $122, with major support at $120. A break below $120 might push the price toward $112, and a close below that could lead to a test of $105.
Technical Indicators
– Hourly MACD: Gaining momentum in the bearish zone.
– Hourly RSI: Below 50.
– Major Support Levels: $122, $120.
– Major Resistance Levels: $128, $131.
Frequently Asked Questions
Frequently Asked Questions About Solanas Price Struggling at 120
BeginnerLevel Questions
1 What does it mean when people say Solana is struggling to maintain 120
It means the price of Solana is having a hard time staying above the 120 level It might repeatedly fall below it after briefly reaching or exceeding it which can indicate selling pressure is stronger than buying interest at that price
2 Why is the 120 price level important
In trading certain round numbers like 100 or 120 often act as psychological support or resistance levels If Solana cant hold above 120 traders may see it as a sign of weakness potentially leading to more selling
3 Could Solanas price actually drop from here
Yes its possible If it consistently fails to hold above 120 and breaks below key support levels it could trigger a larger drop as traders exit their positions
4 Is this just normal market behavior for crypto
Yes cryptocurrencies are known for high volatility Periods of consolidation and struggle at certain prices are very common before the price makes a decisive move either up or down
5 What are some simple signs that a drop might be coming
Watch for these signs the price keeps making lower highs it breaks below 115118 with significant trading volume or theres negative news affecting the broader crypto market
Advanced Practical Questions
6 What technical indicators should I watch if Im concerned about a drop
Key indicators include
Support Levels Watch if it breaks below 115 then 105
Moving Averages A drop below the 50day or 200day simple moving average can signal bearish momentum
Relative Strength Index An RSI consistently below 50 can indicate sustained selling pressure
Trading Volume High volume on down days suggests strong selling conviction
7 Beyond price what fundamental factors could be causing this struggle
Factors include
Network Congestion Past issues with transaction failures or outages can shake investor confidence
Competition Rival blockchains gaining traction in DeFi or NFTs