Solana Price Dips Below Key Support – Is More Downside Ahead?
The recent action of the Solana price on the 4-hour chart suggests a consolidation phase with a bearish bias, marked by declining momentum and weakening support levels. SOL closed at $143.51 in the latest session, showing a slight recovery from the previous low but struggling to gain significant upward traction.
Key Levels To Watch for the Solana Price
The Solana price is currently trading near a key resistance level at $143.52. Recently, the Solana price attempted to break above this level but has faced selling pressure each time, indicating a lack of strong bullish momentum. The next significant resistance levels to watch are $144.17 and $148.10. A break above $144.17 could open the door for a move towards $148.10, but the bulls will need to demonstrate increased buying power to overcome these hurdles.
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On the downside, the Solana price has established support around $143.16, with additional support at $141.80 and $140.42. A break below $143.16 could see the Solana price testing $141.80, and further weakness might push SOL towards $140.42. The recent Solana price action indicates that the altcoin is more likely to test these lower support levels if the current bearish trend persists.
Technical Indicators Flash Bearish
The technical indicators are aligning with the bearish outlook. The 9 and 20 Exponential Moving Averages (EMAs) are both trending downwards, with the 9 EMA crossing below the 20 EMA, signaling a bearish crossover. This crossover suggests that the short-term momentum is weakening, which could lead to further downside movement for the Solana price.
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Meanwhile, the Moving Average Convergence Divergence (MACD) is also providing bearish signals. The MACD line has crossed below the signal line, and the histogram is in negative territory, indicating that selling pressure is increasing. This bearish crossover reinforces the likelihood of a continued downward trend.
The Relative Strength Index (RSI) is currently in the low 40s, which is below the neutral 50 level but not yet in oversold territory. This suggests that while the Solana price is experiencing bearish momentum, there is still room for further downside before the market becomes oversold.
For traders looking to capitalize on the current market conditions, a short position could be considered if the Solana price breaks below the $143.16 support level, targeting the $141.80 and $140.42 levels as potential exit points. On the other hand, a long position might be viable if the Solana price can break above $144.17, with a target towards $148.10, but caution is advised given the overall bearish sentiment.
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