Key Takeaways:
- SOL price started another decline from the $162 resistance.
- It traded below a key contracting triangle with support at $142 on the daily chart.
- Solana must stay above the $120 support to avoid an increase in selling pressure.
Solana (SOL) price is moving lower toward the $120 support. The price might start a decent recovery wave unless it settles below $120.
Solana Price Reaches Key Support At $120
In the last technical analysis, we discussed the importance of the $162 resistance for Solana. The bulls failed to push the price above the $162 resistance. As a result, the price reacted to the downside. Besides, Bitcoin, Ethereum, XRP, Dogecoin, PEPE, and other major cryptocurrencies saw a fresh decline in the past two sessions, increasing selling pressure on SOL.
There was a drop below the $150 and $140 support levels. The price traded below a key contracting triangle with support at $142 on the daily chart.
Solana even traded below the 1.236 Fib extension level of the upward move from the $136.47 swing low to the $162.48 high. It is now trading well below the $140 level and the 50-day simple moving average (blue).
On the downside, there is important support near the $120 zone (a multi-touch region). It is close to the 1.618 Fib extension level of the upward move from the $136.47 swing low to the $162.48 high. Therefore, there are high chances of a fresh bullish wave from $120.
If there is another increase, SOL price could face resistance near the $136 level. The first major resistance sits near the $142 level (the recent breakdown zone).
A successful daily close above the $142 resistance and then a follow-up move above the $145 level could set the tone for another rally. The next major resistance is at $155 and the 50-day simple moving average (blue), above which the bulls might aim for $162. Any more gains might send SOL toward the $180 level.
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More Downsides In SOL Price?
Conversely, Solana might fail to clear the $136 resistance and start another decline. Immediate support is near the $125 level. The main support is $120.
A downside break and close below the $120 support could spark heavy bearish moves. In the stated case, the price might decline toward the $110 support level. Any more losses might call for $100.
Overall, SOL price is struggling below $136 and $142. However, the $120 support might spark a fresh bullish wave in the near term.
