SOL Price (Solana) Freefall But This Level Could Spark A Fresh Increase

SOL Price (Solana) Freefall | Image by Alexa from Pixabay

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.