Solana’s Potential for Significant Downturn: Analyzing SOL Price Forecast

Solana Price Analysis: Potential Downside Thrust

Solana (SOL) is currently experiencing a downward trend from the $115 resistance, indicating potential bearish movement towards the $68 support.

The recent market activity shows several bearish signals, and a sharp decline seems imminent. Let’s delve into the key factors influencing SOL’s price movement.

SOL Price Correction

SOL’s price initiated a fresh decline after facing resistance at the $115 level against the US Dollar. Currently, the price is trading below $100 and the 100 simple moving average (4 hours).

• Key bearish trend line resistance: $92 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
• Possible continuation towards $80 support or even $68.

Downward Movement Overview

Following a period of steady growth, Solana bulls struggled to surpass the $115 resistance, resulting in a short-term top formation. The downward movement accelerated below the $105 support, with the price now below the 50% Fib retracement level of the upward move from the $71 swing low to the $108 high.

The current scenario mirrors bearish trends observed in other major cryptocurrencies like Bitcoin and Ethereum.

SOL is currently trading below $95 and the 100 simple moving average (4 hours). A significant bearish trend line with resistance near $92 is evident on the 4-hour chart of the SOL/USD pair.

Resistance and Support Levels

If there is a fresh increase, immediate resistance is near the $92 level and the trend line. The first major resistance lies around $100 or the 100 simple moving average (4 hours). The primary resistance is at $105, and a successful close above this level could pave the way for another major rally towards $115, with further gains potentially reaching the $125 level.

Potential Downside Scenarios

If SOL fails to rally above the $92 resistance, a continuation of the downward movement is likely. Initial support on the downside is near the $80 level.

• First major support: $72.
• Possible test of $68, and a close below this level may lead to a decline towards the $50 support in the near term.

Technical Indicators

• 4-Hours MACD – The MACD for SOL/USD is gaining pace in the bearish zone.
• 4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.

Major Levels to Watch

• Major Support Levels – $80, and $68.
• Major Resistance Levels – $92, $100, and $105.