Key Takeaways:
SOL price is down over 40% from the $210 high. A crucial bullish trend line is forming with support at $120 on the weekly chart. Solana could stage a fresh increase unless there is a weekly close below $120 and $110.NEW DELHI (CoinChapter.com) — Solana trimmed most gains and traded below $150. SOL is now trading near a major support and might attempt a fresh increase.
Solana Price Reaches Key Juncture
Earlier this year, we saw a massive increase in Solana prices from the $10 zone. SOL jumped over 15x and even broke the $200 level. Finally, it traded as high as $210 and recently started a major decline like Bitcoin and Ethereum.
It declined below the $180 and $162 support levels, as discussed in the last analysis. There was a clear move below the 23.6% Fib retracement level of the main increase from the $7.92 swing low to the $210 high. SOL is down over 40% and there was even a drop below the $130 level.
However, Solana managed to stay above the $100 pivot level and is also well above the 50-week simple moving average (blue). The price is now testing a crucial bullish trend line with support at $120 on the weekly chart.
If the SOL price stays above the trend line support, the bulls might attempt a fresh increase. Immediate resistance on the upside is near the $145 level, and the first major resistance is near the $162 level.
If the bulls pump the price above the $162 resistance, the SOL price could start another rally. The next target for the bulls could be $185. Any more gains might send Solana toward the $200 handle.
More Losses In SOL?
Conversely, the SOL price might struggle to recover above the $145 resistance and continue to move down. Immediate support is near the $130 level. The first major support sits at $120 and the trend line. The main support is now forming near the $110 level. It is close to the 50% Fib retracement level of the main increase from the $7.92 swing low to the $210 high and coincides with the recent spike support.
A weekly close below the $120 and $110 support levels might spark strong bearish moves. In the stated scenario, Solana could revisit the $85 level. The next target for the bears might be $55.
The Solana ecosystem continues to evolve. A recent example was its successful integration with Pundi X Labs. Users can now buy USDT using Solana-supported wallets.
Overall, the SOL price reaches an important support zone at $110-$120. If the bulls protect the $110 support, there could be a fresh increase. If not, Solana might start nosedive toward the $85 support.
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