Key Takeaways:
- SOL price started a strong decline from the $27 resistance zone.
- It traded below a major bullish trend line with support at $22 on the daily chart.
- The bulls might take a strong stand near the key $15 support zone.
Solana’s SOL declined heavily below the $20 support. The price is now approaching major support at $15.25 and $15.00.
Solana’s SOL Price Nosedives
After struggling to clear the $27 resistance zone, SOL price reacted to the downside against the US Dollar. The price formed a double top pattern near the $27.00 zone and declined below $25.
There was a strong decline below the $22 and $20 support levels. During the decline, the price traded below a major bullish trend line with support at $22 on the daily chart. It opened the doors for more losses below $20 and the 50-day simple moving average (blue).
Solana’s price daily chart | Source: SOLUSD on TradingView.com
The price declined below the 50% Fib retracement level of the upward move from the $7.92 swing low to $27.12 high. Today, SOL price is now down over 10%, similar to Bitcoin and Ethereum (down over 8%).
It is now trading well below $18.50 and the 50-day simple moving average (blue). On the upside, an immediate resistance is near the $17.50 level.
An initial support is near the $16.50 level. The next major support is near $15.25 zone. It is close to the 61.8% Fib retracement level of the upward move from the $7.92 swing low to $27.12 high. The main support sits near the $15 zone.
A close below $15 may perhaps start another strong decline. In the stated case, the price might even dive below the $11.50 support.
Fresh Increase?
If SOL price stays above the $15 support, it could start a fresh increase. An immediate resistance is near the $18.50 level. The next major resistance is near the $20 zone. A clear wave above the $20 level could increase the chances of a move toward $22.50.
The next major resistance sits near the $24.50 level. Any more gains might open the doors for a move toward the $27 level in the coming days.
Overall, SOL price is declining heavily below the $20 support zone. If the bears are able to clear the $15 support zone, it could easily drift toward the $12 level. Conversely, there might be a fresh increase above the $20 resistance.
