SOL Price Below 50% Fibonacci: Drop to $115 Ahead?

Solana Price Performance

Solana recently experienced a significant crash, falling 40% from a peak of $193 to a low of $115. A subsequent V-shaped recovery saw the SOL price rebound to $163, marking a 40% increase within three days. However, this bullish momentum was short-lived as supply pressure led to a decline.

Despite initially surpassing the 50 and 200 EMA on the 4-hour chart, the SOL price reversed and fell back below $150. Fibonacci retracement levels indicate that the price faced resistance at the 61.80% level, further dropping below the 38.20% Fib level.

Currently, the price is testing support around $140, which aligns with the broken 38.20% Fibonacci level. This situation suggests an increased downside risk.

Technical Indicators

• RSI: The 4-hour RSI line is approaching the oversold boundary, indicating potential for further downside before reaching the oversold territory.
• EMA: The failed V-shaped recovery has widened the gap between the SOL price and the 50 and 200 EMAs. These dynamic averages are now acting as bearish resistance levels.

Will The SOL Price Hit $115?

The lack of bullish momentum and continued supply pressure suggest that Solana may face further declines. A critical support level is at the 23.60% Fibonacci retracement level, currently around $133. A breakdown below this level could see SOL testing $115.

Conversely, a reversal rally could help SOL reclaim the $150 mark and potentially surge to $180 in the coming weeks.