Key Takeaways:
- SOL price is struggling to stay above the $135 support.
- A major bullish trend line is forming with support at $135 on the weekly chart.
- Solana could decline heavily if there is a close below $135 and then $110.
NEW DELHI (CoinChapter.com) — Solana failed to start a fresh increase above the $162 resistance. SOL is now moving lower and testing an important support at $135.
Solana Price Hits Support
In the last weekly analysis, we saw how Solana declined over 40% and trimmed gains from the $210 resistance. There were back-to-back bearish candles on the weekly timeframe. SOL price even declined below the $162 pivot level to enter a short-term bearish zone.
The price spiked toward the 50% Fib retracement level of the upward move from the $7.92 swing low to the $210 high. The bulls took a strong stand near the $110 support zone and the price stayed well above the 50-week simple moving average (blue).
Recently, Solana attempted a fresh increase above the $135 and $140 levels. However, the bears were active near the $162 resistance, and the price started another decline like Bitcoin.
SOL is now testing the $135 support. On the weekly chart, a major bullish trend line is forming with support at $135. If the bulls fail to protect the trend line support, the price could start another decline below $130.
The first major support sits at $110. The next major support could be $85 or the 61.8% Fib retracement level of the upward move from the $7.92 swing low to the $210 high.
A downside break below the $85 support might increase selling pressure. In the stated scenario, Solana could revisit the $70 level and the 50-week simple moving average (blue). The bears’ next target might be $55.
Another Increase In SOL?
If the SOL price stays above the trend line support, the bulls might attempt a fresh increase. Immediate resistance on the upside is near the $145 level, and the first major resistance is near the $162 level.
If the bulls push the price above the $162 resistance, Solana’s price could gain bullish momentum. The next key resistance for the bulls could be $185. Any more gains might send Solana toward the $200 handle.
Fundamentally, Solana’s team shared a weekly community update this past week. They highlighted key takeaways, including digital payments giant Stripe enabling USDC payments via Solana and the Renaissance Hackathon by Colosseum project directory publication.
Overall, SOL price is testing a crucial support zone at $135. If the bulls fail to protect the $135 support, the price could tumble to $110 or even $85. Conversely, Solana might revisit the $162 resistance zone.
