Solana (SOL) started a fresh decline from the $188 resistance zone. The price is now showing bearish signs and might dip below $150.
Solana Price Signals Downside Break
In the last technical analysis, we saw a decent increase in Solana above the $120 zone. A base was formed, and the price was able to surpass the $165 resistance. The price even cleared the $175 zone before the bears appeared and defended the 50% Fib retracement level of the downward move from the $295 swing high to the $95 low.
A high was formed at $187 and the price started a downside correction, underperforming Bitcoin. There was a move below the $172 support. ADA price dipped below a key rising channel with support at $165 on the daily chart.
Solana is now trading below the 23.6% Fib retracement level of the upward move from the $92 swing low to the $187 high. The price is signaling a downside break below the 50-day simple moving average (blue).
Immediate support is near the $150 level. The first major support sits near the $142 level. It is close to the 50% Fib retracement level of the upward move from the $92 swing low to the $187 high.
If there is a close below the $142 support, the price might dive and test the $130 support. The next key support could be the $118 level. Any more losses could send SOL toward the $102 support zone in the near term.
Recovery In SOL?
If the bulls remain active above the $150 level, the price could start a fresh increase. Immediate resistance is near the $162 level. A convincing move above the $162 resistance could start a fresh increase.
The first major resistance sits near the $165 level. The next key resistance could be $172. A clear move above the $172 level could send the price toward the next key resistance at $188. A successful daily close above the $188 resistance might open the doors for a move toward the $200 level. Any more gains might send the price toward the $220 level in the medium term.
Overall, Solana price is consolidating above the $150 support level. To start a fresh increase, SOL price must settle above the $165 resistance level. If not, the price could start another decline and move toward the $142 support.