Key Takeaways:
- SOL price shows bearish signs below $22.75 and the 50-day simple moving average (blue).
- It follows a key declining channel with resistance near $22.80 on the daily chart.
- There could be a sharp decline toward $17.50 before the bulls take a stand.
NEW DELHI (CoinChapter.com) — Solana’s SOL struggles to hold the $20.50 support. The price could drop further toward $17.50 before there could be a fresh increase.
Solana (SOL) Price Turns Red
SOL price started a fresh decline from the $32.50 zone against the US Dollar. The price traded below the $28.00 and $25.00 levels to enter a bearish zone.
The recent drop in Bitcoin and Ethereum also increased selling pressure on Solana. The bears gained strength to move below the key wave’s 50% Fib retracement level from the $13.02 swing low to the $32.50 high.
The price settled below the $22.50 pivot level and the 50-day simple moving average (blue). More importantly, the price follows a key declining channel with resistance near $22.80 on the daily chart.
SOL is now struggling to stay above the $20.50 support zone. It is close to the key wave’s 61.8% Fib retracement level from the $13.02 swing low to the $32.50 high. There could be a strong downside thrust if there is a downside break and a close below the $20.50 support zone.
The price could test the $17.50 support zone (a multi-touch region and a strong pivot level) in the stated case. Any more losses may open the doors for a drop toward the $14.20 support.
Fresh Increase?
Conversely, the SOL might stay above $17.50 and attempt a fresh increase. On the upside, Solana could face resistance near the $22.00 level. The next major resistance is near the $22.75 level, the 50-day simple moving average (blue), and the channel region.
A successful daily close above the channel resistance and then $23.00 could increase the price. The next key resistance is near the $25.60 zone, above which the price may accelerate toward $28.50.
Overall, the SOL price is struggling to stay above the $20.50 and $20.00 levels. It seems like there is a risk of a downside thrust toward the $17.50 support before the bulls appear. If Solana stays above $17.50, there could be a steady increase toward $25.60 or even $28.00.
