Solana (SOL) Inches Toward $200—Breakout Confirmation Needed

Solana started a fresh decline from the $210 zone. SOL price is consolidating and might aim for a fresh move above the $200 resistance zone.

• SOL price started a fresh decline below the $205 and $200 levels against the US Dollar.
• The price is now trading below $200 and the 100-hourly simple moving average.
• There is a connecting bearish trend line forming with resistance at $198 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 $200 zone.

Solana Price Faces Hurdles

Solana price struggled to clear the $210 resistance and started a fresh decline, like Bitcoin and Ethereum . SOL declined below the $202 and $200 support levels.

It even dived below the $192 level. The recent low was formed at $188 before the price started a recovery wave. There was a move above the $190 and $192 levels. The price cleared the 23.6% Fib retracement level of the downward move from the $209 swing high to the $188 swing low.

However, the bears are active below the $200 level. They protected the 50% Fib retracement level of the downward move from the $209 swing high to the $188 swing low.

Solana is now trading above $200 and the 100-hourly simple moving average. On the upside, the price is facing resistance near the $198 level. There is also a connecting bearish trend line forming with resistance at $198 on the hourly chart of the SOL/USD pair.

Source: SOLUSD on TradingView.com

The next major resistance is near the $200 level. The main resistance could be $202. A successful close above the $202 resistance zone could set the pace for another steady increase. The next key resistance is $210. Any more gains might send the price toward the $220 level.

Another Decline in SOL?

If SOL fails to rise above the $200 resistance, it could start another decline. Initial support on the downside is near the $194 zone. The first major support is near the $188 level.

A break below the $188 level might send the price toward the $180 zone. If there is a close below the $180 support, the price could decline toward the $175 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 – $194 and $188.

Major Resistance Levels – $200 and $202.