The pair could accelerate lower below the $55.00 support zone in the coming sessions.
Solana broke the resistance of $65 against the US dollar. SOL price is now correcting gains and could even fall below the $50 support. SOL price started a major rally above the $60 resistance before bears emerged against the US Dollar. The price is now trading below $60 and the 100 simple moving average (4-hours).
There was a break below a short-term ascending channel with support near $58.00 on the 4-hour chart of the SOL/USD pair (data feed from Kraken).
Solana Price Begins Downward Correction
In the past few days, Solana saw a major rally above the $60 level. SOL gained bullish momentum after settling above $60, outperforming Bitcoin and Ethereum. The bulls even raised the price above the $65 level.
A high was formed near $68.16 and the price recently saw a downward correction. It traded below $60 and tested $52. A low was formed near $51.23 and the price is now consolidating in a range. There was a break below a short-term ascending channel with support near $58.00 on the 4-hour chart of the SOL/USD pair.
SOL is now trading below $60 and the 100 simple moving average (4-hours). On the upside, immediate resistance is near the $59.50 level. It is close to the 50% Fibonacci retracement level of the downside move from the high of $68.16 to the low of $51.23. The first major resistance is near the $60.00 level.
The main resistance is now near $62 or the 61.8% Fibonacci retracement level of the downward move from the high of $68.16 to the low of $51.23. A successful close above the $62.00 resistance could set the pace for a further rise. The next key resistance is near $68.50. Any further gains could send the price towards the $72.00 level.
More Losses in SOL?
If SOL fails to recover above the $60.00 resistance, it could continue to decline. Initial support on the downside is near the $55.00 level. The first major support is near the $51.20 level, below which the price could test $50.
If there is a close below the $50 support, the price could fall towards the $45 support in the near term. 4-Hour MACD
The following are important technical indicators:
- The MACD for SOL/USD is losing pace in the bullish zone.
- 4-hour RSI (Relative Strength Index): The RSI for SOL/USD is below the 50 level.
- Main support levels: $55.00 and $51.20. Main resistance levels: $60.00, $62.00 and $68.50.
SOL Price Prediction: Will It Go Up Again?
A closer look at the wave count on the daily time frame reveals a positive outlook.
Starting in June, SOL appears to have started a five-wave upward movement (white). In it, wave three extended, having 2.61 times the length of wave one. If the count is correct, SOL is now in the fourth wave, which is corrective. It is unclear if the fourth wave has ended or if the price will correct further. If it does, it could return to the $48 long-term support area before bouncing again.
The count suggests that the trend is still bullish and that the price of SOL will rise again. The bullish count will be confirmed by a bullish move of SOL above the yearly high of $68.4, which could trigger a 50% rise to the next resistance of $86.20.
By Audy Castaneda
