Key Takeaways:
- SOL price started a fresh decline from the $47.50 resistance zone.
- It broke a major bullish trend line with support near $42 on the 4-hours chart.
- The bears might aim a retest of the $32 support or even $30.
Solana’s SOL declined sharply after it failed to test $50. The price broke the $40 support and might continue to move down towards $30.
Solana (SOL) Price Declined over 15%
After forming a base above the $40 level, SOL started a fresh increase against the US Dollar. The price was able to clear the $45.00 and $46.00 resistance levels.
The price even spiked above the $47.50 level and settled the 50 simple moving average (4-hours, blue). However, the bears were active near the $47.70 level. A high was formed near $47.69 and the price reacted the downside.
Solana’s 4-hours price chart | Source: SOLUSD on TradingView.com
There was a steady decline below the $45.00 support zone. More importantly, there was a break below a major bullish trend line with support near $42 on the 4-hours chart. It opened the doors for more losses, similar to bitcoin.
The price declined below the 50% Fib retracement level of the upward move from the $31.80 swing low to $47.69 high. There was a close below the $40 support zone and the 50 simple moving average (4-hours, blue).
The price is now trading near the $35.80 support. It is near the 76.4% Fib retracement level of the upward move from the $31.80 swing low to $47.69 high.
An initial support is near the $35.80 level. The next major support is near $33.20. The main support sits near the last swing low or $32. A close below $32 may perhaps start a strong decline. In the stated case, the price might even dive below the $30 support.
On the upside, an immediate resistance is near the $37.20 level. The next major resistance is near the $38 level and a connecting bearish trend line on the same chart. A clear wave above the $38.00 level could increase the chances of a move above $40.
In the stated case, the price could retest the $45 resistance level. The next major resistance is near $47.50, above which the price might rise towards the $50 resistance.
Overall, SOL price settled below a major support at $40. If the bears remain in action, there are high chances of a drop to $32 or even $30. Conversely, there might be a fresh rise to $45.
