Solana gained bearish momentum and traded below $20 against the US dollar. The SOL price may now struggle to recover above the $20 and $21 resistance levels.
- SOL price is showing bearish signs below the $20.50 resistance against the US dollar.
- The price is now trading below $19.80 and the 100 simple moving average (4 hours).
- A major bearish trendline is forming with resistance near $19.90 on the 4-hour chart of the SOL/USD pair (data source from Kraken).
- The pair could recover, but gains may be limited above $20.
Solana Price extends losing streak
Last week, the price of Solana started to fall again from well above $21. SOL gained bearish momentum and was able to trade below the $20.50 support.
The bears gained strength and pushed the price below the $20 support. The price is now showing bearish signs below $20, similar to bitcoin and Ethereum. A low is forming near $18.70 and the price is now consolidating losses.
SOL is now trading below $19.80 and a simple moving average of 100 (4 hours). A major bearish trendline is also forming on the 4-hour chart of the SOL/USD pair with resistance near $19.90. On the upside, there is immediate resistance near the $19.80 level and the trend line.
Another major resistance is near the $20 zone or the 50% Fib retracement level of the downward move from the $21.51 high to the $18.70 low. Major resistance is now forming near the $20.50 level and the 100 simple moving average (4 hours).
Source: SOLUSD on TradingView.com
The 61.8% Fib retracement level of the move down from the $21.51 swing high to the $18.70 low is also near $20.50. A close above the $20.50 level could send the price back to the $21.50 resistance zone. Any further gains could send the price towards the $22 level.
More losses in SOL?
If SOL fails to clear the $20.50 resistance, it may continue to move lower. Initial downside support is near the $19.00 level.
The first major support is near the $18.80 level, below which the bears could gain strength. In the said case, the price of Solana may possibly fall towards the $18.20 support. Another major support is near the $17.50 level.
Technical indicators
4-Hours MACD – The MACD for SOL/USD is gaining momentum in the bearish zone.
4-Hours RSI (Relative Strength Index) – The RSI for SOL/USD is below the 50 level.
Major support levels – $18.80 and $18.20.
Major resistance levels – $20.00, $20.50 and $21.50.
