Key Takeaways:
- SOL price is moving lower below the $23.50 support.
- A key bearish trend line is forming with resistance near $22.75 on the 4-hours chart.
- A downside break below the $21.40 level might open the doors for a move toward $20.
Solana’s SOL is struggling below the $23.50 zone. The price is at risk of a downside break below the $21.40 support zone.
Solana (SOL) Price Could Slide Further
After a steady increase, SOL faced sellers near the $26.80 zone against the US Dollar. As a result, the price started a fresh decline and traded below the key $25 support zone.
There was a clear move below the $24.20 and $23.50 support levels. The recent low was around $21.44 before the price started an upside correction. The price climbed above the $22.50 level, but the bears were active near $23.50. It is again moving below $23, similar to Ethereum and Bitcoin.
The price trades below the $22.25 level and the 50 simple moving average (blue, 4 hours). SOL is also trading below the 61.8% Fib retracement level of the recent increase from the $21.44 swing low to 23.52 high.
On the downside, initial support is near the $21.80 level. The next major support is nearly $21.40. A close below $21.40 may perhaps start another strong decline.
In the stated case, the price might decline toward the $20.00 support or the 1.618 Fib extension level of the recent increase from the $21.44 swing low to 23.52 high. Any more losses may open the doors for a move toward the $18.80 level.
Upside Break Attempt?
On the upside, immediate resistance is near the $22.50 level. In addition, a key bearish trend line is forming with resistance near $22.75 on the 4-hours chart.
A clear move above the trend line might set the pace for a recovery wave toward the $24.00 level and the 50 simple moving average (blue, 4 hours). The next major resistance is near the $25.50 zone. A clear wave above the $25.50 level could start a fresh surge soon. The price may rise toward the $28 resistance in the stated case.
Overall, the SOL price is clearing below the $22.50 support. If the bears remain active, there is a risk of a move toward the $20.00 support zone in the near term. Conversely, there might be a fresh rise toward the $24 level.
