Solana (SOL) has faced difficulties breaking through the $200-$205 resistance zone and is now experiencing a decline, trading below key support levels. Here’s a detailed analysis of the current market situation:
Current Market Conditions:
• Price Movement:
After struggling to maintain above the $200-$205 resistance zone, Solana’s price started to decline, falling below the $192 support level. The price even dipped to as low as $182.20 and is now consolidating losses.
• Below Key Levels:
SOL is currently trading below $192 and the 100-hourly Simple Moving Average (SMA), indicating bearish momentum. Additionally, a bearish trend line has formed with resistance at $190 on the hourly chart.
Resistance and Support Levels:
• Resistance Levels:
• $190: Immediate resistance, where the price is currently facing selling pressure.
• $192: The next significant resistance level. If the price clears this level, it could signal a potential recovery.
• $200: A major resistance zone, including the 50% Fibonacci retracement level of the decline from $223 to $182. A break above this level could pave the way for further upward movement, potentially reaching $212 and $225.
• Support Levels:
• $182: The recent low forms a short-term support level.
• $180: A key support level, which, if broken, could lead to a deeper decline.
• $175 and $162: If the price falls below $180, the next major support zones are at $175 and $162, respectively.
Potential Scenarios:
1. Bullish Scenario:
If Solana manages to rise above $190 and clears $192, there could be a possibility of a recovery, with the next resistance levels at $200, $212, and $225.
2. Bearish Scenario:
If SOL fails to clear the $190-$192 resistance zone, it could continue its decline. The next support levels to watch are $182, $180, and $175. A drop below $175 might push the price towards $162.