Solana (SOL) is consolidating gains below the $220 resistance. The price might correct gains, but the bulls could remain active at $190.
Solana Price Shows Signs of Downside Correction
In the last analysis, we discussed why Solana must settle above the $213 and $220 resistance levels to start another increase. However, the bears remained active near the $220 resistance. A high was formed at $218 and the price corrected some gains.
SOL price dipped below the $212 and $208 levels. There was a move below the 23.6% Fib retracement level of the upward move from the $156 swing low to the $218 high. It is now consolidating gains and downsides were limited compared to Bitcoin.
Solana is still well above the 50-day simple moving average (blue). The current price action suggests the price could correct some gains before the bulls step in again.
Immediate support is near the $200 level. The first major support is $195. The main breakdown region is now forming near $188 and the 50% Fib retracement level of the upward move from the $156 swing low to the $218 high.
There is also a rising channel forming with support at $188 on the daily chart, which coincides with the 50-day simple moving average (blue). A downside break and close below $188, channel, and the 50-day simple moving average (blue) might spark bearish moves.
In the stated case, SOL price might decline toward $170. The next major area of interest for the bulls could be $156. If the bulls fail to protect $156, there could be a drop toward the $142 zone. Any more losses could send SOL toward $130.
Another Surge In SOL?
If Solana remains stable above $188, there could be a fresh increase. Immediate resistance on the upside is near the $212 level. The first key barrier sits at $218 and $220.
A close above $220 might accelerate gains. In the stated case, the price could drift toward the $230 level. If there is a clear move above the $230 resistance, the price could drift toward $242. The next key resistance could be $250, above which the bulls could aim for a test of $265. Any more gains might send the price toward the $280 level in the coming days.
Overall, Solana price is consolidating gains above $188 and $190. To continue higher, SOL price must settle above the $212 and $220 resistance levels. If not, the price could correct gains and revisit the $188 support.
