Solana Price Faces Key Barrier
Solana (SOL) tested the $155 support and recovered some losses. The price could gain bullish momentum if it clears the $186 resistance.
In the last technical analysis, we saw a downside correction in Solana from the $205 resistance zone. SOL underperformed Bitcoin and dipped below the $188 support level. There was also a drop below the $166 and $162 levels.
The bears pushed the price below the 50% Fib retracement level of the upward move from the $126 swing low to the $205 high. However, the bulls were active near the $155 support zone and the 50-day simple moving average (blue).
Solana is now back above the $170 level and trading well above the 50-day simple moving average (blue). However, the bears seem to be active near the $188 resistance.
SOL is now consolidating gains above the $170 level. There is also a connecting bullish trend line formed with support at $166 on the daily chart. To start a fresh increase, the price must stay above the trend line. Immediate resistance on the upside sits near the $180 level. The first major resistance could be $188.
If there is a daily close above the $188 resistance, the price could drift toward the $205 level. The next key resistance could be $212, above which the bulls could aim for a test of $225. Any more gains might send the price toward the $250 level in the coming days.
Downside Break In SOL?
If Solana remains below $188, there could be more losses. Immediate support is near the $170 level. The first major support sits near the $166 level and the trend line.
If there is a close below the $166 support, the price might dive and test the $155 pivot level. It coincides with the 61.8% Fib retracement level of the upward move from the $126 swing low to the $205 high. If the bulls fail to protect the $155 support, there could be a drop toward the $140 support zone. Any more losses could send SOL toward the $125 level in the near term.
Overall, Solana price is consolidating above a major support at $166. To continue higher and gain momentum like Ethereum, SOL price must settle above the $188 and $205 resistance levels. If not, the price could start another decline and test the $155 support.