Solana (SOL) at Risk: Could More Losses Be on The Horizon?

Solana started a fresh decline below the $250 support. SOL price is consolidating and might face resistance near the $235 and $242 levels.

• SOL price started a fresh decline below the $250 and $240 levels against the US Dollar.
• The price is now trading below $240 and the 100-hourly simple moving average.
• There is a key bearish trend line forming with resistance at $235 on the hourly chart of the SOL/USD pair (data source from Kraken).
• The pair could start a fresh increase if the bulls clear the $242 zone.

Solana Price Dips Below $250

Solana price struggled to clear the $260 resistance and started a fresh decline, like Bitcoin and Ethereum . SOL declined below the $250 and $242 support levels.

It even dived below the $230 level. The recent low was formed at $225 and the price is now consolidating losses. It climbed a few points above the $230 level. It cleared the 23.6% Fib retracement level of the downward move from the $244 swing high to the $225 low.

Solana is now trading below $240 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $235 level or the 50% Fib retracement level of the downward move from the $244 swing high to the $225 low.

Source: SOLUSD on TradingView.com

There is also a key bearish trend line forming with resistance at $235 on the hourly chart of the SOL/USD pair. The next major resistance is near the $242 level. The main resistance could be $250. A successful close above the $250 resistance zone could set the pace for another steady increase. The next key resistance is $260. Any more gains might send the price toward the $275 level.

Another Decline in SOL?

If SOL fails to rise above the $235 resistance, it could start another decline. Initial support on the downside is near the $225 zone. The first major support is near the $222 level.

A break below the $222 level might send the price toward the $212 zone. If there is a close below the $212 support, the price could decline toward the $200 support in the near term.

Technical Indicators

Hourly MACD – The MACD for SOL/USD is losing pace in the bullish zone.

Hourly Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Major Support Levels – $225 and $222.

Major Resistance Levels – $235 and $242.