Solana (SOL) started a major decline below the $235 support. It is now consolidating near $220 and faces a crucial test in the near term.
Solana Price Struggles To Stay In Uptrend
In the past few days, Solana too saw heavy bearish moves, like Bitcoin, Ethereum, and other cryptocurrencies. SOL started a fresh decline below the $250 and $235 support levels to enter a short-term bearish zone. The bears even pushed the price below the $220 support and the 50-day simple moving average (blue).
More importantly, there was a sharp spike below the $200 pivot level. The price tested the key support at $175. A low was formed at $176 and the price started a recovery wave. There was a decent increase and the price reclaimed the $200 level.
Solana price daily chart | Source: SOL/USD on TradingView.comSolana is now consolidating near the $200 level. Besides, there was no daily close below a major bullish trend line with current support at $192 on the daily chart.
The current price action is still bearish, and it seems like the bulls are struggling to keep the price above the trend line support. If they manage to start a recovery, immediate resistance sits near the $205 level or the 23.6% Fib retracement level of the downward move from the $295 swing high to the $176 low.
The first major resistance sits near the $210 level and the 50-day simple moving average (blue). The main resistance sits at the channel zone at $220.
A clear move above the $220 level could send the price toward the next key resistance at $235. It coincides with the 50% Fib retracement level of the downward move from the $295 swing high to the $176 low.
A successful daily close above the $235 resistance might open the doors for a test of the $265 barrier. Any more gains might send the price toward the $300 level in the coming days.
Recently, Solana announced the APEX summits. It offers a dynamic one-day immersion into the Solana ecosystem. The first will be held in Mexico City on February 7, 2025.
More Losses In SOL?
Conversely, Solana might struggle to start a fresh increase above $205 or $220 and there could be another bearish reaction. Immediate support is near the $195 level. The first major support sits near the $192 level and the trend line.
The main support is now forming near the $175 zone, below which the price might gain bearish momentum. The next support sits at $155. Any more losses could send SOL toward the $132 support zone in the near term.
Overall, Solana price is consolidating above the $200 and $190 support levels. To start a fresh surge, SOL must settle above the $220 and $235 resistance levels. If not, it might dip and retest the $155 support.
The post Solana (SOL) Reaches a Do-or-Die Moment: A Bounce or a Bigger Drop? first appeared on Coinchapter.
The post Solana (SOL) Reaches a Do-or-Die Moment: A Bounce or a Bigger Drop? appeared first on Coinchapter.
