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Solana has been struggling to maintain momentum, failing to settle above the critical $90 threshold. The cryptocurrency’s price remains trapped within a range, currently facing resistance near the $90-$92 levels, which could signal a potential downturn if the price declines below $80. After a recent recovery wave that saw SOL prices rise above both the $75 and $80 levels against the US Dollar, the market is now watching closely for signs of further movement. Currently, SOL is trading above $85 and above the 100-hourly simple moving average. Importantly, a bearish trend line is forming with a resistance point at $88, as illustrated on the hourly chart of the SOL/USD pair, using Kraken data as a reference. Should the price manage to clear both the $88 and the $92 levels, it could pave the way for an upward trajectory.
The latest price activity reflects a minor recovery as Solana shows increased stability, recovering from a lower base around $68. Comparatively, SOL has mirrored movements seen in other leading cryptocurrencies, such as Bitcoin and Ethereum. Notably, it managed to surpass the significant $75 level, along with making a notable advance past the 50% Fibonacci retracement level relevant to the recent downturn from the $106 swing high to the $68 low. Despite this, bearish trends remain prevalent below the $90 mark, with many traders exercising caution. The aforementioned bearish trend line at $88 also compounds the sell pressure, and with Solana now above $80, market participants are keenly observing for any breakout above this technical barrier.
In terms of market dynamics, immediate resistance is seen near the $88 level, coinciding with the trend line mentioned earlier. Following that, the $92 level serves as the next significant area of resistance alongside the 61.8% Fibonacci retracement level from the previously noted swing high. In a more optimistic scenario, breaking through the $95 resistance zone could signal a solid foundation for continued upward movement. If SOL can gain ground and secure consistent closes above these critical levels, the price could potentially rise towards $102 and, should upward momentum sustain, even reach the $112 level.
Yet, should SOL fail to maintain its upward trajectory and continue to face resistance at $92, a decline may be imminent. The initial support level on the downside is identified at $84, with the first major support being at the psychological $80 mark. A drop below this key level could trigger further bearish sentiment, directing prices towards the $72 support zone. In scenarios where prices dip beneath the $72 support, market projections indicate a potential decline as far down as the $68 zone in the short term.
Technical analysis tools further reflect the mixed sentiment surrounding SOL. The hourly MACD appears to be gaining pace within the bullish zone, suggesting some degree of positive momentum, while the hourly RSI (Relative Strength Index) stands above the pivotal 50 level, indicating that there is still some buying interest. Collectively, major support levels remain at $84 and $80, while resistance levels are firmly positioned at $88 and $92.
In summary, Solana’s current price movement reflects a crucial juncture where traders are weighing the potential for recovery against the risk of further declines. The recent recovery from the lows underscores the volatility inherent within the crypto market. Investors will be closely monitoring the resistance at $90-$92 alongside support levels as fundamental indicators of Solana’s next moves, particularly in the context of broader market conditions impacting cryptocurrencies at large. How the price interacts with these key zones could provide deeper insights into Solana’s capacity for future growth amidst a challenging trading environment.
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