Solana failed to stay above $90 and corrected gains. SOL price is still above $85 and might attempt another increase in the near term.
- SOL price started a downside correction below $90 against the US Dollar.
- The price is now trading above $85 and the 100-hourly simple moving average.
- There is a rising channel forming with resistance at $88 on the hourly chart of the SOL/USD pair (data source from Kraken).
- The pair could extend losses if it dips below the $85 zone.
Solana Price Starts Downside Correction
Solana price failed to surpass $92 and started a downside correction, like Bitcoin and Ethereum. SOL dipped below $90 and $88 to enter a short-term bearish zone.
There was a move below the 50% Fib retracement level of the upward wave from the $76.54 swing low to the $91.20 high. However, the bulls were active above the $82 support. The price is back above $85. There is also a rising channel forming with resistance at $88 on the hourly chart of the SOL/USD pair.
Solana is now trading above $85 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $88 level. The next major resistance is near the $90 level. The main resistance could be $92. A successful close above the $92 resistance zone could set the pace for another steady increase. The next key resistance is $95. Any more gains might send the price toward the $102 level.
Another Decline In SOL?
If SOL fails to rise above the $92 resistance, it could start another decline. Initial support on the downside is near the $85 zone. The first major support is near the $82 level or the 61.8% Fib retracement level of the upward wave from the $76.54 swing low to the $91.20 high.
A break below the $82 level might send the price toward the $76.50 support zone. If there is a close below the $76.50 support, the price could decline toward the $72 support in the near term.
Technical Indicators
Hourly MACD – The MACD for SOL/USD is gaining pace in the bullish zone.
Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is above the 50 level.
Major Support Levels – $85 and $82.
Major Resistance Levels – $88 and $92.
Source: https://www.newsbtc.com/analysis/solana-sol-gears-up-for-92/
