Solana encounters significant resistance levels in the cryptocurrency market recently encountering hurdles, particularly around the $160 and $170 marks. This has prompted both investors and analysts to closely track the digital asset’s future trajectory.
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Solana Encounters Significant Resistance Levels
In the SOL/USD pair’s 4-hour chart, a significant resistance barrier has formed at $160. Despite attempts to breach this level, SOL has struggled to maintain trades above it, remaining below the 100 simple moving average (4 hours).
https://coinmarketcap.com/currencies/solana/
An essential element in the technical analysis is the upward trend line established at the $146 support level. This trend line plays a crucial role in determining the SOL/USD pair’s price movements.
However, it’s crucial to consider the potential for a downward price trend in Solana, a cryptocurrency ranked among the top five. If SOL continues to linger below the $160 and $170 levels for an extended period, it could signal the start of another downturn.
A Potential Downturn and Support Level
Failure to break above the $160 resistance level could trigger another downward trend. Currently, the initial support lies around the $145 level, closely aligned with the trend line. A breach below this level could bolster expectations for further declines.
Looking ahead, the primary support for SOL is around $132. Should the price attempt to breach this level, a pullback towards approximately $120 might occur. If a close below the $120 support level materializes, a retreat to the $100 support zone could be anticipated in the short term.
Technical Indicators and Current SOL Price
The 4-hour Moving Average Convergence Divergence (MACD) for SOL/USD continues to gain momentum in the negative territory, indicating a potential increase in selling pressure for Solana.
Additionally, the 4-hour Relative Strength Index (RSI) for SOL/USD is trending below the 50 level, suggesting a strengthening control by sellers. As of the latest data, Solana is trading at $146, needing approximately a 10% increase to reach $160.
https://coinmarketcap.com/currencies/solana/
Conclusion
To conclude, Solana encounters significant resistance levels particularly around $160 and $170, leading to increased scrutiny from investors and analysts. The cryptocurrency’s inability to sustain trades above $160, coupled with technical indicators suggesting increased selling pressure, indicates a challenging road ahead. However, the $145 and $132 levels offer crucial support, with a potential breach signaling further declines and a retreat to the $100 support zone in the short term.
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