Solana (SOL) started a downside correction from the $205 zone. The price is consolidating gains and testing a major support at $175.
Solana Price Dips To Support
In the last technical analysis, we saw a major increase in Solana above the $175 pivot level. The price gained pace for a move above the $185 and $188 resistance levels, beating Bitcoin. Finally, the price spiked above the $200 resistance and the 1.236 Fib extension level of the downward move from the $188 swing high to the $126 low.
A high was formed at $205 and the price started a downside correction. There was a move below the $188 and $186 levels. SOL dipped below the 23.6% Fib retracement level of the upward move from the $126 swing low to the $205 high.
Solana is still above the $175 level and the 50-day simple moving average (blue). The bulls seem to be active near the $175 support. There is also a major bullish trend line formed with support at $175 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 $185 and $188 levels. The first major resistance could be $200.
If there is a daily close above the $200 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. It is close to the 1.618 Fib extension level of the downward move from the $188 swing high to the $126 low. Any more gains might send the price toward the $232 level in the coming days.
More Losses In SOL?
If Solana remains below $188, there could be more losses. Immediate support is near the $175 level and the trend line. The first major support sits near the $166 level and the 50% Fib retracement level of the upward move from the $126 swing low to the $205 high.
If there is a close below the $166 support, the price might dive and test the $156 pivot level. If the bulls fail to protect the $156 support, there could be a drop toward the $145 support zone. Any more losses could send SOL toward the $132 support zone in the near term.
Overall, Solana price is consolidating above a major support at $175. To continue higher and gain momentum, SOL price must settle above the $188 and $200 resistance levels. If not, the price could start another decline and test the $166 support.