Solana (SOL) started a fresh decline from the $200 resistance zone. It is now gaining bearish momentum and might dive to the $140 support.
Solana Price Signals Bearish Breakdown
In the past few days, Solana failed to gain pace for a steady increase, unlike Bitcoin. SOL failed to clear the $200 pivot level and reacted to the downside. There was a clear move below the $180 support zone and the price settled below the 50-day simple moving average (blue).
The price gained bearish pace below the 76.4% Fib retracement level of the upward move from the $170 swing low to the $295 high. It even traded below the last swing low of $170, signaling a bearish breakdown.
Solana is now showing bearish signs below the $165 level. The current price action is still negative, with a high chance of more downsides in the coming sessions. There is also a steep bearish trend line forming with resistance at $178 on the daily chart.
Immediate support is near the $150 level. The first major support sits near the $144 level. If there is a close below the $144 support, the price might dive and test the $140 support. It is close to the 1.236 Fib extension level of the upward move from the $170 swing low to the $295 high.
The next key support could be $132 level. Any more losses could send SOL toward the $120 support zone in the near term.
Another Recovery Attempt In SOL?
If the bulls manage to protect the $150 support, there could be a fresh upward move. Immediate resistance on the upside sits near the $172 level. The first major resistance sits near the $178 level and the same trend line.
A close above the trend line resistance could decrease selling pressure and send the price higher toward the $195 resistance. The next key resistance could be $200 and the 50-day simple moving average (blue).
A clear move above the $200 level could send the price toward the next key resistance at $218. A successful daily close above the $218 resistance might send the price toward the $235 level. Any more gains might send the price toward the $250 level in the coming days.
Overall, Solana price is signaling a breakdown below the $180 support and the 50-day simple moving average (blue). If the bears remain in action, the price could test $140 or even $132. To start a fresh increase, SOL must settle above the $178 and $180 resistance levels.
