Solana (SOL) Price at Potentially Significant Turning Point: Here’s Why

Key Takeaways:

  • SOL price started a fresh decline from the $48.00 resistance zone.
  • It broke a crucial bullish trend line with support near $41.50 on the daily chart.
  • The bulls are now protecting a major support zone at $30.
Solana (SOL) Price Tests $30
Solana (SOL) Price Tests $30 | Image from Stockvault and cryptologos

Solana’s SOL declined sharply after it broke the $40 support. The price is now consolidating above the main $30 support zone.

Solana (SOL) Price Revisits $30

After a steady increase, SOL failed to test the $50 resistance zone against the US Dollar. The price formed a high near the $48.43 level and started a fresh decline, similar to bitcoin and ethereum.

The price declined heavily below the $45 and $42 support levels. There was a clear move below a crucial bullish trend line with support near $41.50 on the daily chart. The price even traded below the $40 support and the 50-day simple moving average (blue).

Solana’s daily price chart
Solana’s daily price chart | Source: SOLUSD on TradingView.com

The decline gained pace and the price even spiked below $32. A low is formed near $30.23 and the price is now consolidating losses.

It seems like the bulls are currently active near the all-important $30 support zone. On the upside, an immediate resistance is near the $34.50 level. It is near the 23.6% Fib retracement level of the downward move from the $48.43 swing high to $30.23 low.

The next major resistance is near the $40 zone and the 50-day simple moving average (blue). It is close to the 50% Fib retracement level of the downward move from the $48.43 swing high to $30.23 low. A clear wave above the $40.00 level could increase the chances of a move above $45.

The main breakout zone on the upside sits near the $50 zone. If there is no push above $35 or $40, the price might resume its decline. An initial support is near the $31.80 level.

The next major support is near $30.20. The main support sits near the last swing low or $30. A close below $30 may perhaps start a strong decline. In the stated case, the price might even dive below the $28 support.

Overall, SOL price settled below a major support at $35. If the bulls are able to protect the main $30 support, the price could start a decent increase towards $35 or even $40. Conversely, there might be a fresh decline below $30.

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