Solana (SOL), once lauded as an "Ethereum-killer," finds itself in a precarious position as its price continues to slide, potentially heading below the key $160 mark. After a recent fall from the $180 US Dollar barrier zone, the digital asset has struggled to regain its footing, dipping below $170 and the crucial 100-hourly Simple Moving Average (SMA).
Despite Bitcoin and Ethereum showing signs of upward momentum, SOL has bucked the trend, accelerating its decline beneath the $170 support level. The price even dropped to a low near $160 before staging a modest recovery above $165. This slight rebound saw SOL break the 23.6% Fib retracement level of the latest slide from the $180 swing high to the $160 low.
However, the outlook remains cautious. Solana is currently trading beneath $170 and the 100-hour SMA, with a bearish trend line forming on the hourly SOL/USD chart, connecting to resistance at $170. This trend line, alongside the $169 level, presents significant hurdles for any potential upside. The 50% Fib retracement level of the recent $180 to $160 drop also sits around $169, further reinforcing this resistance. The next major resistance point is spotted near $172.
The $180 mark is seen as a pivotal barrier. A sustained close above this barrier zone could signal the beginning of another steady ascent for SOL, with the next target at $185. Should that be breached, the price could even push beyond $200, a welcome sight for those in the Solana community.
Will SOL Decline Further?
Conversely, if SOL fails to decisively clear the $170 resistance, further declines are on the cards. Initial downside support is found near the $162 zone, with the first major support around $160. A breach below this critical $160 level could see prices tumble toward $155. If that support gives way, a more substantial drop to $142 cannot be ruled out.
Technical Indicators:
* MACD (Hourly for SOL/USD): The Moving Average Convergence Divergence is currently rising but remains in the negative zone, suggesting that while some buying interest is emerging, bears still hold sway.
* Hourly RSI (SOL/USD): The Relative Strength Index is currently below 50, indicating a bearish sentiment in the market.
Key Levels to Watch:
* Major Support Levels: $162, $160
* Major Resistance Levels: $170, $172
The coming hours and days will be crucial for Solana as market participants watch to see if buyers can step in and prevent a deeper plunge into the danger zone.
#TrumpTariffs #MarketPullback #solana #Bitcoin2025
