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Is Solana (SOL) Headed for a New Downturn? What Traders Should Watch Out For!
Solana news indicates a potential shift in market sentiment as the cryptocurrency struggles to maintain its recent gains. After attempting to breach the $130 resistance level, Solana (SOL) has faced a notable correction. The price has dipped below $126 and is now hovering around the $125 mark, with possible support emerging near the $120 region.
Current Price Action and Key Levels
SOL price recently entered a bearish phase, following a broader market trend similar to Bitcoin and Ethereum. The decline below $126 and $125 signals a troubling short-term outlook for Solana. Notably, the price has fallen beneath the 50% Fibonacci retracement level of the recent upward movement from the swing low of $117 to the high of $127. However, buyers remain active around the $122 area, indicating some interest in this price range.
The technical landscape shows a bearish trend line forming with resistance at $124 on the hourly chart for the SOL/USD pair. Currently, Solana is trading below the important $125 level and the 100-hour simple moving average, which could indicate further weakness. If the price fails to overcome the resistance near $125, traders should prepare for potential losses.
Resistance and Support Levels to Monitor
In terms of resistance, the immediate hurdle lies at $125, followed by another significant level at $128. The critical resistance to watch is the $130 mark. A successful breakout above this zone could pave the way for further gains, potentially leading to a move towards $135 or even $142.
Conversely, if Solana fails to reclaim the $125 resistance, it might initiate a fresh decline. Traders should pay close attention to the initial support near the $122 level. Key support levels include $120 and the 76.4% Fibonacci retracement level of the upward wave from $117 to $127. A break below the $120 support could lead to a deeper correction towards the $112 zone. If this level does not hold, the price could further decline, targeting the $105 support level in the near term.
Technical Indicators Suggest Caution
Several technical indicators reinforce the cautious outlook for Solana. The hourly MACD is gaining momentum in the bearish zone, suggesting further downward pressure is possible. Additionally, the Relative Strength Index (RSI) for SOL/USD remains below the critical 50 level, indicating that selling momentum may continue.
Traders should remain vigilant and closely monitor these levels, as the market dynamics can shift rapidly. With Solana’s current position, the potential for a bearish wave is palpable. For those interested in the broader cryptocurrency landscape, consider exploring more insights in our crypto section.
As the market reacts to these developments, it’s essential for investors to stay informed and make decisions based on thorough analysis. For further trading opportunities, you might want to check out this trading platform for potential strategies and insights.
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