Solana (SOL) Faces Selloff, But Can It Find Strong Support?

Solana (SOL) started a fresh decline below the $212 support. It is now showing bearish signs and might dive to test the $170 support.

Solana Price Signals Short-Term Break Down

In the past few days, Solana too saw a steady decline from well above the $250 level, unlike Bitcoin. SOL traded below the $232 and $220 support levels to enter a bearish zone. There was also a close below the $212 level and the 50-day simple moving average (blue).

The bears pushed the price below the 76.4% Fib retracement level of the upward move from the $170 swing low to the $195 high. More importantly, there was a break below a key bullish trend line with support at $190 on the daily chart.

Solana is now consolidating below the $195 level and struggling to stay in a positive zone. The current price action is still bearish, and it seems like the bulls are struggling to keep the price stable.

Immediate support is near the $180 level. The first major support sits near the $170 level. If there is a close below the $170 support, the price might dive and test the $150 support. The next key support could be $140 level.

It is close to the 1.236 Fib extension level of the upward move from the $170 swing low to the $195 high. Any more losses could send SOL toward the $120 support zone in the near term.

Fresh Recovery In SOL?

If the bulls manage to protect the $170 support, there could be a fresh upward move. Immediate resistance on the upside sits near the $200 level.

The first major resistance sits near the $210 level and the 50-day simple moving average (blue). The main resistance sits at the channel zone at $220. A clear move above the $220 level could send the price toward the next key resistance at $235.

A successful daily close above the $235 resistance might send the price toward the $250 level. Any more gains might send the price toward the $265 level in the coming days.

Overall, Solana price is signaling a breakdown below the $200 support and the 50-day simple moving average (blue). If the bears remain in action, the price could test $170 or even $150. To start a fresh increase, SOL must settle above the $200 and $210 resistance levels.

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