SOL Price (Solana) Reaches Key Juncture, Is This Bulls Trap or Technical Correction?

Key Takeaways:

• SOL price climbed above $20.00 but struggled near $20.50.
• A major rising channel is forming with support near $19.50 on the 4-hour chart.
• The price could form a double-top pattern if it breaks the $19.00 support.

SOL Price Reaches Key Juncture | Image from Binance Academy

New Delhi(CoinChapter): Solana’s SOL price recovered above $20.00 but faced heavy resistance at $20.50. The price is correcting gains and might plunge if the bulls fail to protect $19.00.

Solana Price Revisits Major Resistance

In the last SOL price prediction, we discussed whether the bulls could save the $19.00 support against the US Dollar. The price failed to stay above $19.00 and extended its decline.

There was a move below $18.00 before the bulls appeared near $17.50. A low was formed near $17.36 and the price recently started a fresh increase. It climbed above $20.00 but again failed to clear the main resistance at $20.50.

Solana’s 4-hour price chart | Source: SOL/USD on TradingView.com

A high is formed near $20.53 and SOL price is now moving lower. It seems like there is a risk of a double-top pattern at $20.50. However, the price is still above the 50 simple moving average (blue, 4 hours), like Bitcoin and Ethereum.

Besides, there is a major rising channel forming with support near $19.50 on the 4-hour chart. Immediate support is near the 23.6% Fib retracement level of the upward move from the $17.36 high to the $20.53 high at $19.75.

The first major support is near the channel trend line at $19.50 and the 50 simple moving average (blue, 4 hours). The main breakdown support is now near $19.00 or the 50% Fib retracement level of the upward move from the $17.36 high to the $20.53 high.

A close below $19.00 may perhaps send Solana further lower toward the $18.00 support. Any more losses may perhaps open the doors for a move toward the $17.50 support.

Another Attempt To Clear $20.50 by SOL?

Conversely, SOL might stay above $19.50 or $19.00 and start a fresh increase. On the upside, immediate resistance is near the $20.20 level. The first major resistance is near $20.50. A clear break above the $20.50 resistance could stage a strong rally.

The next key resistance is near the $22.00 zone. If there is a clear move above $22.00, Solana could rise toward the $25.00 resistance zone.

Overall, SOL price is retreating from the $20.50 resistance once again. If the bulls fail to protect the $19.00 support, there could be more losses. Conversely, the price might make another attempt to clear $20.50.